AAA downgrade: Osborne firm on 'debt problem' plan

Britain must stick to a plan to tackle the country's "debt problem", according to the chancellor, following the downgrading of Britain's credit rating by the agency Moody's.

George Osborne said that abandoning the government's plans to reduce the deficit would make the situation "very much worse". Shadow chancellor Ed Balls has criticised Mr Osborne for refusing to take more measures to boost the economy.

Moody's cut the UK's top rate to AA1 - the first downgrade to the country's rating since 1978.