Nick Clegg sets out what he thinks Lib Dem economic policy should for 2015

From a speech given on Monday:

Nick Clegg. Photo: Dave Radcliffe. Some rights reserved by Liberal Democrats http://www.flickr.com/photos/libdems/6163280560/sizes/m/in/photostream/In the Autumn Statement we set out a plan to get debt falling as a proportion of GDP by 2016/17 and to get the current structural deficit in balance a year later. That is the right timescale and the one to which the Liberal Democrats remain absolutely committed. If I am in government again, this is the plan I want us to stick to.

Ed Balls has now confirmed that Labour think they can put all this off until the end of the next parliament. Borrowing more, piling on more debt, diminishing the confidence of our creditors…

The Conservatives, on the other hand, agree we need to finish what we’ve started, but they will not do that in a way that is fair.  To hold our country together in these difficult times, it is essential that everyone makes a fair contribution…

By contrast, the Liberal Democrats will continue to rely on a mix of tax and spending measures to fill the black hole in our finances, just as we have in this Coalition Government. The Conservatives have decided to break with the approach they have signed up to in government with us in order to pursue spending cuts alone, but I believe, as do most mainstream economists, that a mix of tax and spending measures is the most economically and socially responsible way to proceed..

Once we’ve completed the fiscal consolidation and the economy is growing, the services the nation relies on should benefit from that growth. I expect the best way to do this will be broadly to maintain the share of our nation’s wealth used to deliver public services and investment. Once we are paying our way as a country again, the resources we apply to our common good should grow as the economy grows.

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