DC: Recovery depends on tackling the debt

David Cameron has spoken of the pressing need to tackle the enormous debt which Britain is accumulating.

The UK was one of the first economies to go into recession, and is now the last big economy to come out - new figures are expected to show the first signs of economic growth after eighteen months of recession.

"Obviously this will be very good news, but let’s be absolutely clear what this means", Cameron said at his monthly press conference.

"Coming out of recession doesn’t mean that our debt crisis is over - far from it. Labour’s debt crisis is the biggest threat to our recovery. So we’ll only get this recovery right if we start right now on a proper debt reduction plan."

In highlighting the need to "get a grip of our debt crisis", Cameron used the analogy of a credit card: "the more we spend and the longer we wait to pay off our bills, the worse it can get".

He said that the Government’s promise to halve the deficit in four years has failed to convince all those who we need to have confidence in Britain’s economic future.

"A key part of any plan is at least some early action to show that you are serious in your intent. That means some reduction in public spending plans in this coming financial year."

"It is time they realised that it’s time to do the right thing", Cameron added.

Comments

Sackerson said…
The big picture, in my view, is managing our transition to a poorer economy without major social disruption. Unless we default (directly, or indirectly by devaluation) on a great deal of debt, the deflationary pressures of globalisation will turn debt into a permanent millstone round our necks.

P.S. I came upon your blog by Googling for references to C Northcote Parkinson's "The Fur-Lined Mousetrap", which you discussed in 2006!
11:37 am
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