Cable: Economy is worse now than it was one year ago

Vince Cable assesses the impact of the spending review one year on.

"We knew it would be difficult and unpopular, but we didn't know that there would be a major crisis in our export markets and that energy prices would shoot up.

"There is no point pretending this isn't difficult. The basic discipline is not something the government is doing enthusiastically.

"We know conditions are very difficult but the government is doing the best it can to protect people."