Elliot Morley defended the rise

Agriculture Parliamentary Secretary Elliot Morley was forced to defend the Bank of England's 0.25% rise, which brings rates to 7.5%, during Question Time.

"There's no denying a rise in interest rates is bad news for many sectors," he said.

Elliot Morley defends the "bitter blow"

"On the other hand, it would be even worse news if there was a rise in inflation or if the present well-managed stewardship of the economy was challenged.

"The economy in this country is being managed for the long term, not the short term."

Government "complacent"

A series of Tory MPs attacked the effect of the latest rate rise, as well as the strength of the pound, on farmers.

Tory agriculture spokesman Michael Jack accused ministers of being "complacent" over the effect of the rise in the cost of borrowing on farm incomes.

Caroline Spelman: "Bitter blow"

Meriden's Caroline Spelman dubbed the rate a "bitter blow" for farmers and the wide range of industries supporting them.

Mr Morley said that two-thirds of the rise in the level of the pound took place under the last government. And rural unemployment had fallen by 4% in the last year.

Labour's Dale Campbell-Savours recalled how, when interest rates were 15% under the Tories, he and other members had a "steady stream" of farmers complaining about economic hardship.

Mr Morley stressed: "I'm confident that the management of the economy is in the best interest of farmers and the country in general."