Ed Balls: 'The medicine's not working'

The shadow chancellor has criticised the government for "ploughing on regardless" with its economic plans, following a decision by the credit ratings agency Moody's to downgrade the UK from its AAA status.

Ed Balls said the country was "paying a very big price" for the chancellor's commitment to reducing the deficit.

Moody's is the first agency to cut the UK from its highest rating to Aa1, saying the government's debt reduction programme faced significant "challenges" ahead.

Chancellor George Osborne said the decision was "a stark reminder of the debt problems facing our country".