Osborne sticks to deficit reduction plan despite double dip

Chancellor George Osborne has ruled out easing his debt reduction plan despite yesterday's news the UK has plunged back into recession.

Figures from the Office for National Statistics yesterday confirmed gross domestic product had contracted 0.2% in the first quarter of 2012, following a 0.3% contraction in the previous quarter. Two consecutive quarters of contraction has confirmed the UK is now officially in recession. The fall in output is a blow for Osborne, who has recently been criticised over his tough austerity drive. Since the coalition was created nearly two years ago, the economy has grown only 0.4%. Pressures on the Coalition government to change course on its plans to cut the nation's deficit mounted follo...