We'll have to cut costs - Darling

The government will have to make "hard choices" on spending as it deals with the effects of the recession, the chancellor says.

He said ministers would have to look at selling off "non-essential public sector assets" and shift resources to "where they are needed most".

But he said cutting spending now risked "choking off" the recovery.

Earlier, Tory leader David Cameron said Labour's planned spending increases next year were "unaffordable".

James Lansdale reports.