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.