We Must Tackle Britain's Massive Deficit and Growing Debt
Rt Hon David Cameron, Monday, June 7 2010
I have now been in office for a month.
I have spent much of that time discussing with the Chancellor and government officials the most urgent issue facing Britain today: our massive deficit and growing debt.
How we deal with these things will affect our economy, our society - indeed our whole way of life.
The decisions we make will affect every single person in our country.
And the effects of those decisions will stay with us for years, perhaps decades to come.
It is precisely because these decisions are so momentous.
Because they will have such enormous implications.
And because we cannot afford either to duck them or to get them wrong...
...that I want to make sure we go about the urgent task of cutting our deficit in a way that is open, responsible and fair.
I want this government to carry out Britain's unavoidable deficit reduction plan in a way that strengthens and unites the country.
I have said before that as we deal with the debt crisis we must take the whole country with us - and I mean it.
George Osborne has said that our plans to cut the deficit must be based on the belief that we are all in this together - and he means it.
Tomorrow, George Osborne and Danny Alexander will publish the framework for this year's Spending Review.
They will explain the principles that will underpin our approach, and the process we intend to follow...
...including a process to engage and involve the whole country in the difficult decisions that will have to be taken.
But today, I want to set out for the country the big arguments that form the background to the inevitably painful times that lie ahead of us.
Why we need to do this.
Why the overall scale of the problem is even worse than we thought.
And why its potential consequences are therefore more critical than we feared.
WHY WE NEED TO DO THIS
There are three simple reasons why we have to deal with the country's debts.
One: the more government borrows, the more it has to repay; the more it has to repay, the more lenders worry about getting their money back; the more lenders start to worry, the less confidence there is in our economy.
Two: investors do not have to put their money in Britain - they will only do so if they're confident the economy is being run properly, and when confidence in our economy is hit, we run the risk of higher interest rates.
Three - and the real, human, everyday reason this is the most urgent problem facing Britain...
...is that higher interest rates hurt every family and every business in the land.
They mean higher mortgages and lower employment.
They mean that instead of your taxes going to pay for things we want, like schools, hospitals and policing...
...your money, the money you work so hard for, is going on paying the interest on our national debt.
That's why we have to do something about this.
This argument that we have consistently made - for urgent action to start tackling the deficit this year and an accelerated plan for eliminating it over the years ahead - has already been backed by the Bank of England and the Treasury's own analysis.
It has been made more urgent still by the sovereign debt crisis in the Eurozone over recent months.
The global financial markets are no longer focussing simply on the financial position of the banks.
They want to know that the governments that have supported the banks over the last eighteen months are taking the actions to bring their own finances under control.
We Must Tackle Britain's Massive Deficit and Growing Debt
Rt Hon David Cameron, Monday, June 7 2010
I have now been in office for a month.
I have spent much of that time discussing with the Chancellor and government officials the most urgent issue facing Britain today: our massive deficit and growing debt.
How we deal with these things will affect our economy, our society - indeed our whole way of life.
The decisions we make will affect every single person in our country.
And the effects of those decisions will stay with us for years, perhaps decades to come.
It is precisely because these decisions are so momentous.
Because they will have such enormous implications.
And because we cannot afford either to duck them or to get them wrong...
...that I want to make sure we go about the urgent task of cutting our deficit in a way that is open, responsible and fair.
I want this government to carry out Britain's unavoidable deficit reduction plan in a way that strengthens and unites the country.
I have said before that as we deal with the debt crisis we must take the whole country with us - and I mean it.
George Osborne has said that our plans to cut the deficit must be based on the belief that we are all in this together - and he means it.
Tomorrow, George Osborne and Danny Alexander will publish the framework for this year's Spending Review.
They will explain the principles that will underpin our approach, and the process we intend to follow...
...including a process to engage and involve the whole country in the difficult decisions that will have to be taken.
But today, I want to set out for the country the big arguments that form the background to the inevitably painful times that lie ahead of us.
Why we need to do this.
Why the overall scale of the problem is even worse than we thought.
And why its potential consequences are therefore more critical than we feared.
WHY WE NEED TO DO THIS
There are three simple reasons why we have to deal with the country's debts.
One: the more government borrows, the more it has to repay; the more it has to repay, the more lenders worry about getting their money back; the more lenders start to worry, the less confidence there is in our economy.
Two: investors do not have to put their money in Britain - they will only do so if they're confident the economy is being run properly, and when confidence in our economy is hit, we run the risk of higher interest rates.
Three - and the real, human, everyday reason this is the most urgent problem facing Britain...
...is that higher interest rates hurt every family and every business in the land.
They mean higher mortgages and lower employment.
They mean that instead of your taxes going to pay for things we want, like schools, hospitals and policing...
...your money, the money you work so hard for, is going on paying the interest on our national debt.
That's why we have to do something about this.
This argument that we have consistently made - for urgent action to start tackling the deficit this year and an accelerated plan for eliminating it over the years ahead - has already been backed by the Bank of England and the Treasury's own analysis.
It has been made more urgent still by the sovereign debt crisis in the Eurozone over recent months.
The global financial markets are no longer focussing simply on the financial position of the banks.
They want to know that the governments that have supported the banks over the last eighteen months are taking the actions to bring their own finances under control.
We Must Tackle Britain's Massive Deficit and Growing Debt
Rt Hon David Cameron, Monday, June 7 2010
I have now been in office for a month.
I have spent much of that time discussing with the Chancellor and government officials the most urgent issue facing Britain today: our massive deficit and growing debt.
How we deal with these things will affect our economy, our society - indeed our whole way of life.
The decisions we make will affect every single person in our country.
And the effects of those decisions will stay with us for years, perhaps decades to come.
It is precisely because these decisions are so momentous.
Because they will have such enormous implications.
And because we cannot afford either to duck them or to get them wrong...
...that I want to make sure we go about the urgent task of cutting our deficit in a way that is open, responsible and fair.
I want this government to carry out Britain's unavoidable deficit reduction plan in a way that strengthens and unites the country.
I have said before that as we deal with the debt crisis we must take the whole country with us - and I mean it.
George Osborne has said that our plans to cut the deficit must be based on the belief that we are all in this together - and he means it.
Tomorrow, George Osborne and Danny Alexander will publish the framework for this year's Spending Review.
They will explain the principles that will underpin our approach, and the process we intend to follow...
...including a process to engage and involve the whole country in the difficult decisions that will have to be taken.
But today, I want to set out for the country the big arguments that form the background to the inevitably painful times that lie ahead of us.
Why we need to do this.
Why the overall scale of the problem is even worse than we thought.
And why its potential consequences are therefore more critical than we feared.
WHY WE NEED TO DO THIS
There are three simple reasons why we have to deal with the country's debts.
One: the more government borrows, the more it has to repay; the more it has to repay, the more lenders worry about getting their money back; the more lenders start to worry, the less confidence there is in our economy.
Two: investors do not have to put their money in Britain - they will only do so if they're confident the economy is being run properly, and when confidence in our economy is hit, we run the risk of higher interest rates.
Three - and the real, human, everyday reason this is the most urgent problem facing Britain...
...is that higher interest rates hurt every family and every business in the land.
They mean higher mortgages and lower employment.
They mean that instead of your taxes going to pay for things we want, like schools, hospitals and policing...
...your money, the money you work so hard for, is going on paying the interest on our national debt.
That's why we have to do something about this.
This argument that we have consistently made - for urgent action to start tackling the deficit this year and an accelerated plan for eliminating it over the years ahead - has already been backed by the Bank of England and the Treasury's own analysis.
It has been made more urgent still by the sovereign debt crisis in the Eurozone over recent months.
The global financial markets are no longer focussing simply on the financial position of the banks.
They want to know that the governments that have supported the banks over the last eighteen months are taking the actions to bring their own finances under control.
We Must Tackle Britain's Massive Deficit and Growing Debt
Rt Hon David Cameron, Monday, June 7 2010
I have now been in office for a month.
I have spent much of that time discussing with the Chancellor and government officials the most urgent issue facing Britain today: our massive deficit and growing debt.
How we deal with these things will affect our economy, our society - indeed our whole way of life.
The decisions we make will affect every single person in our country.
And the effects of those decisions will stay with us for years, perhaps decades to come.
It is precisely because these decisions are so momentous.
Because they will have such enormous implications.
And because we cannot afford either to duck them or to get them wrong...
...that I want to make sure we go about the urgent task of cutting our deficit in a way that is open, responsible and fair.
I want this government to carry out Britain's unavoidable deficit reduction plan in a way that strengthens and unites the country.
I have said before that as we deal with the debt crisis we must take the whole country with us - and I mean it.
George Osborne has said that our plans to cut the deficit must be based on the belief that we are all in this together - and he means it.
Tomorrow, George Osborne and Danny Alexander will publish the framework for this year's Spending Review.
They will explain the principles that will underpin our approach, and the process we intend to follow...
...including a process to engage and involve the whole country in the difficult decisions that will have to be taken.
But today, I want to set out for the country the big arguments that form the background to the inevitably painful times that lie ahead of us.
Why we need to do this.
Why the overall scale of the problem is even worse than we thought.
And why its potential consequences are therefore more critical than we feared.
WHY WE NEED TO DO THIS
There are three simple reasons why we have to deal with the country's debts.
One: the more government borrows, the more it has to repay; the more it has to repay, the more lenders worry about getting their money back; the more lenders start to worry, the less confidence there is in our economy.
Two: investors do not have to put their money in Britain - they will only do so if they're confident the economy is being run properly, and when confidence in our economy is hit, we run the risk of higher interest rates.
Three - and the real, human, everyday reason this is the most urgent problem facing Britain...
...is that higher interest rates hurt every family and every business in the land.
They mean higher mortgages and lower employment.
They mean that instead of your taxes going to pay for things we want, like schools, hospitals and policing...
...your money, the money you work so hard for, is going on paying the interest on our national debt.
That's why we have to do something about this.
This argument that we have consistently made - for urgent action to start tackling the deficit this year and an accelerated plan for eliminating it over the years ahead - has already been backed by the Bank of England and the Treasury's own analysis.
It has been made more urgent still by the sovereign debt crisis in the Eurozone over recent months.
The global financial markets are no longer focussing simply on the financial position of the banks.
They want to know that the governments that have supported the banks over the last eighteen months are taking the actions to bring their own finances under control.
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