George Osborne is under pressure from both sides of the coalition to change the government’s economic plan after the loss of the UK’s triple A credit rating prompted colleagues of the chancellor to question his economic credibility.
An influential group of Conservative backbenchers is planning to use the downgrade to mount a major push for further tax and spending cuts in next month’s Budget, arguing this is the only way to stimulate the economy.
But Mr Osborne is facing calls to do exactly the opposite from the other side of the coalition, as Liberal Democrats lobby for the government to spend more money on housing.
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