"Demolition day" for Brown's tax and spend policies

The Governor of the Bank of England has called on Labour to set tougher goals to reduce the "extraordinary public debt".

This stark warning from the Governor, Mervyn King, comes on the same day as new figures show that Britain is facing the biggest deficit in the world.

George Osborne said, "This is the demolition day for Gordon Brown's tax and spending policies."

And the Shadow Chancellor added, "We urgently need an election to rescue this country from a government whose denial is a danger to the recovery."