George Osborne making a speech
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Osborne: £25bn more cuts needed

6 January 2014 Last updated at 23:18 GMT

The chancellor has said that the UK will see further cuts to public spending despite the recent upturn in the economy.

Speaking at a factory in Birmingham, Mr Osborne warned a further £25bn spending cuts would be needed after the next election.

However Deputy Prime Minister Nick Clegg said the Conservatives were making a "monumental mistake" by attempting to balance the books "on the backs of the poor".

Nick Robinson reports.