BBC News graphic
Media playback is unsupported on your device
Video

Osborne defiant despite AAA credit rating loss

George Osborne has said the government must "redouble its efforts" to tackle UK debts, despite the loss of the UK's AAA status with credit ratings firm Moody's.

The chancellor said the downgrade was because of slow global growth and the difficult process of reducing debt, which he said must continue.

He was responding to an urgent Commons question from Labour, who say he is in "complete denial" about the situation.

Hugh Pym reports.

Go to next video: Downgrade 'warning over debt'