Ed Balls
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Shadow Chancellor reacts to 'negative growth' predictions

The Governor of the Bank of England, Mervyn King, has said inflation could rise as high as 5% over the next few months leading to an inevitable drop in the living standards of millions of people.

The Chancellor, George Osborne, said the bad weather in December was to blame but the government would not be "blown off course" from its austerity programme.

BBC Breakfast's Sian Williams spoke to Shadow Chancellor Ed Balls about what economists are calling "negative growth".

  • 26 Jan 2011