Labour 'must not lose its nerve'

The government must not "lose our nerve" in dealing with the recession, Lord Mandelson has said.

The business secretary added that Labour should have "the mindset of insurgents who are restless with the status quo, not incumbents".

However speaking to the TUC annual conference in Liverpool, general secretary Brendan Barber said there should be no public spending cuts at all, until unemployment has been brought down.

Nick Robinson reports.