Chancellor tells CBI he will not change economic path

Chancellor George Osborne has told business leaders that he will not deviate from his plans to reduce the deficit.

"Now is not the time to lose our nerve. Let's not listen to those who would take us back to square one," he said to the CBI business group.

Mr Osborne said the government had a clear plan and it was working.

"Let's carry on doing what is right for Britain. Let's see this through", he said.

Mr Osborne's speech to the annual dinner of the CBI comes as figures showed UK unemployment rose by 15,000 in the first three months of the year to 2.52 million.