George Osborne: Britain 'prepared' for China economy shock

Chancellor George Osborne says that Britain is much better prepared than it was a few years ago to deal with turmoil in China's economy.

The People's Bank of China has cut its main interest rate by 0.25 percentage points to 4.6% after two days of stock market turmoil.

Mr Osborne said the best thing for Britain to do was to continue trade with China and "keep our own house in order".