Davos 2011: Coalition refuses to 'pump bubble back up'

The Prime Minister will argue the challenges facing the UK are "not easy" to overcome but the budget deficit must be tackled through spending cuts, writes the BBC. Meanwhile, the Guardian says Cameron will respond to the sudden slump in growth by insisting there is no easy way out: "We can't just flick on the switch of government spending, or pump the bubble back up." Figures released this week showed the UK economy had contracted by 0.5% in the last three years of 2010. In what is a concerted attempt to steady frayed nerves, Chancellor George Osborne, also in Davos, will promise t...