A video decoder, a video decoding method, a video encoder and a video encoding method are disclosed. A video decoder for decoding a video bitstream for an image block includes a motion vector resolution reducer and a motion compensator. The motion vector resolution reducer is for receiving decoded high resolution motion vectors included in the video bitstream and for reducing an accuracy of the high resolution motion vectors to correspond to a low resolution. The motion compensator, in signal communication with the motion vector resolution reducer, is for forming a motion compensated high resolution prediction using the reduced accuracy motion vectors. The video encoder for encoding scalable video comprises a motion compensator for forming a motion compensated full resolution prediction and combining the motion compensated full resolution prediction from an image block to form a prediction residual. The prediction residual is downsampled to form a low resolution downsampled prediction residual and then coded.