Danny Alexander: Labour in 'fantasy world'

It will be a "longer and harder road" than hoped but the government is making progress on addressing the deficit, Chief Secretary to the Treasury Danny Alexander has insisted.

Speaking after Chancellor George Osborne's Autumn Statement, Mr Alexander also defended the coalition's plans to try and reduce spending on benefits.

He said Labour was living in a "fantasy world" and that economic turmoil in Europe and beyond continued to have an impact on the UK.