When the Government came to power in May 2010, we inherited the largest structural deficit in our peacetime history, the highest of any major developed economy. Our country was on the brink of bankruptcy and we have been forced to pay over £120 million a day in interest on the debts left us by Labour.
The overriding objective of the two parties who came together to form the Coalition Government, was to rescue the economy by repairing the public finances and starting to live within our means as a country once again.
We have had to make many hard choices, and there can be no doubt that our economy has been severely hampered by the ongoing crisis in the Eurozone.
However, two and half years on we have cut Labour’s deficit by a quarter and gained the confidence of the international markets. This has kept interest rates at near record lows, helping everyone who runs a business or who pays a mortgage.
To boost jobs and enterprise, we have cut corporation tax. By the end of this Parliament, our corporate tax rates will be the lowest of any major developed economy. We are setting up the ‘Funding for Lending’ scheme enabling businesses to access much needed finance to get investment flowing again.
To provide relief for household budgets, the Government has helped local authorities freeze council tax, with levels in Barnet frozen for a fourth consecutive year.
Now we are seeing the first, tentative signs that our economy is healing. A million new jobs have been created in the private sector and the economy has returned to growth.
There is a long way to go but those like Labour who say we should let up on our efforts to fix the public finances are wrong. Everyone knows you cannot borrow your way out of a debt crisis.