PM holds talks over budget with Osborne and Lib Dems

The prime minister has held talks with the Chancellor George Osborne and his Liberal Democrat coalition partners to seek agreement on next week's budget.

It has been suggested that Mr Osborne is arguing for a cut in the 50 pence top tax rate to promote enterprise.

Labour has said tax cuts "for the richest people in Britain" would be the wrong priority.

The BBC's chief economics correspondent Hugh Pym examines the arguments.