Chancellor Undeterred Amid Tory Backlash

George Osborne has insisted the coalition Government will not deviate from its economic course - despite a drubbing at the polls and a backlash from within his own party.

The Chancellor conceded the elections had delivered a "tough result" for the Government and claimed he understood why voters had shown their anger at the ballot box .

Insisting "Britain doesn't duck its problems", he pledged ministers were working together to sort out the mess.

But, as criticism continued to rain down on Mr Osborne and Prime Minister David Cameron , Conservative Nadine Dorries went as far as to warn the leadership it could be ousted by Christmas.

"According to the rules of the backbench 1922 Committee, in order for David Cameron's position as leader to be challenged, the chairman of the committee needs to receive 46 signatures from Conservative MPs to signal a vote of no confidence," she told The Mail On Sunday.

"I would guess that those signatures are already coming in and will reach 46 by Christmas."

The Chancellor said he took the blame for the way the Budget had backfired after tax cuts for low earners were overshadowed by the " granny tax " and the " pasty tax ".

In The Mail On Sunday, he wrote: "Let me take it on the chin. Last week's elections produced a tough result for the Government at a tough time for the country.

"People know we've had to make unpopular decisions to fix the country's problems but they want us to remember that times aren't easy for families.

"So they are making sure that times aren't easy for the Government either. I get that."

He continued that "one thing matters more than whether the Government is popular at this point. It matters that it is right".

Meanwhile, Business Secretary Vince Cable has backed George Osborne over his fiscal plans.

"Because there are no miracle cures...I think it's often underestimated the scale of the problem we're faced with.

We've faced - for the first time in almost a century - the complete collapse of the financial system, a massive recession - Britain's now about 10% poorer than it was before the financial crisis.

"Rebuilding the economy... turning that round is not something that can be achieved overnight but we're very committed to doing it. And that's the core task of the Coalition."