Brown tells TUC cuts are needed

Gordon Brown admitted for the first time that spending cuts will be needed when he addressed union leaders at the TUC conference in Liverpool.

The prime minister acknowledged that cuts in budgets would have to be made, but promised that front line services would be spared.

Mr Brown did not go into detail about where the cuts might fall, nor when.

The Conservatives have described it as "complete capitulation."

James Landale reports.