Economy and austerity: Sajid Javid and Stephen Timms

The debate between stimulus and deficit has been awkward for Ed Miliband who initially refused to say in a BBC radio interview whether his proposed VAT cut would mean extra borrowing, only to later admit that it would.

Labour's Stephen Timms told the Daily Politics that the coalition's "policies are not working" and he claimed there was a need for "urgent action to kick-start the economy". He was asked how much borrowing would be needed to finance Labour plans for a VAT cut.

Treasury Minister Sajid Javid predicted a "long road" but added the deficit was "heading in the right direction". He said the markets "want a government dealing with the problems and that is what we have been doing".

The pair debated the economy and austerity, with Times writer Philip Collins who claimed Mr Miliband was "frightened of his own policy".

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