Cameron heaps praise on IDS...but still backs Osborne

David Cameron has attempted to heal deep wounds in the Conservative party by praising outgoing Work and Pensions Secretary Iain Duncan Smith following a weekend of bitter recriminations.

The Prime Minister told MPs that Mr Duncan Smith "contributed an enormous amount to the work of this Government and he can be proud of what he achieved".

But Mr Cameron also made clear his support for embattled George Osborne, whose is now left casting around to find more than £4 billion after his Budget unravelled.

The Prime Minister said the Conservatives remained a "modern, compassionate, one nation" party and hailed the Chancellor's role in improving the life chances of the poor.