Ed Balls: UK economy urgently needs a 'Plan B'

The shadow chancellor, Ed Balls, has demanded a cut in VAT, a big construction plan, and a cut in national insurance for small companies in response to the latest GDP figures.

Mr Balls said complacency and excuses by the chancellor and prime minister were not good enough.

Official figures suggest the economy shrank again in the final quarter of last year by point 3.1%