DAVID Cameron yesterday pledged to "finish the job" on cutting the UK's budget deficit as Ed Miliband accused him of failure and complacency.

After official figures showed Britain's double-dip recession was the worst for more than 50 years, the Prime Minister made clear he would not let up on the austerity programme.

He said the Coalition's bold decisions on pensions and welfare meant the UK had earned credibility with the markets and that in two years the budget deficit had been reduced by one-quarter.

As fears were raised Britain may lose its AAA credit rating, he told a global business conference in London: "Be in no doubt: we will go on and finish the job. We will deal with the deficit. We will keep UK interest rates low."

The PM said getting the national debt under control was absolutely essential for growth but pointed out how fiscal discipline and growth should go hand in hand.

Mr Cameron and his Chancellor, George Osborne, received strong backing from Angel Gurria, secretary general of the Organisation for Economic Co-Operation and Development, who urged them to "persevere" with their deficit-reduction strategy.

However, Mr Miliband branded the latest GDP figures "not just disappointing, they were a disaster".

He added: "The Prime Minister seems complacent. He promised change, he promised things would get better but it hasn't happened."

Meanwhile, Vince Cable, the Liberal Democrat Business Secretary, denied he was pushing for Mr Osborne's job.

However, questions over Mr Osborne's future continued as Conservative backbencher Nadine Dorries tweeted: "For the sake of country and Conservative party, most trusted politician in UK, William Hague, needs to become Chancellor."