Osborne 'does not accept' voters are £1,600 worse off

The Chancellor has rejected Labour's accusation that voters were £1,600 worse off a year under the Coalition, insisting the austerity programme had kept interest rates down and allowed him to freeze petrol duty and to increase the personal tax allowance.

"Ultimately, the folk who are just about to go out to work, they understand that having a job and having low interest rates are incredibly important to them and their families," George Osborne told Daybreak.

The Coalition was able to "take further action" to keep the lost of living down by freezing fuel duty, increase the personal tax free allowance and take young people out of jobs tax.