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Nick Clegg: No change of course on deficit reduction

27 January 2013 Last updated at 13:06 GMT

The government is "absolutely not going to change course" on reducing the deficit, Deputy Prime Minister Nick Clegg has insisted.

The latest GDP figures showed the UK economy shrank by 0.3% in the last three months of 2012, fuelling fears the economy could re-enter recession.

Mr Clegg said the government was "resolute" and "restlessly creative" in finding ways to make the economy grow.

He insisted the coalition had already reduced the deficit by a quarter. He added that last year employment had increased.