UK loses top AAA credit rating for first time since 1978

The UK has lost its top AAA credit rating for the first time since 1978 on expectations that growth will "remain sluggish over the next few years".

The ratings agency Moody's became the first to cut the UK from its highest rating, to Aa1.

Chancellor George Osborne responded by insisting that he would re-double his efforts to deliver economic recovery.

Wendy Urquhart reports.