George Osborne: 'Good news on borrowing and jobs'

A fall in the UK unemployment rate to 7.1% has been welcomed by the Chancellor.

Speaking from the World Economic Forum in Davos, Switzerland, George Osborne said the drop in the number of people out of work was "evidence that [the government's] long-term economic plan is working."

The bigger-than-expected fall in unemployment brings the figure close to the point at which the Bank of England has said it will consider raising interest rates.