Wednesday, 18 February 2015

Prosperity for everyone

Liberal Democrats are building a stronger economy and a fairer society.

One of our priorities for the next five years is balancing the books fairly and investing in public services, creating prosperity for everyone.

By finishing the job in 2017/18, Liberal Democrats are showing that there is light at the end of the tunnel.

We are the only party who can commit to investing in public services in the next parliament, while also getting the public finances back under control.

After 2017/18, our new fiscal rules will ensure that debt continues to fall as a share of the economy while allowing us to invest in key infrastructure and vital public services such as schools and hospitals.

Under our plans the end of austerity is in sight – in three years’ time, unlike the other parties who will keep on cutting.

In Labour’s case because they will not have balanced the books and because the Conservatives have an ideological commitment to a smaller state.

We will cut less than the Conservatives and borrow less than Labour.

In 2019/20, we will cut £38bn less from public spending than the Tories.

Over the course of the next parliament, we will borrow £70bn less than Labour, which will lead to £4bn less paid in interest on our debts.

As we finish the job of balancing the books, we will continue to protect NHS funding; education spending from cradle to college; the pensions triple lock and the international aid budget.

Once we have finished the job of balancing the books in 2017/18, we will abide by two new fiscal rules:

  • The Debt Rule: To get debt down to sustainable levels by the mid-2020s.
  • The Balanced Budget Rule: That we will balance the total budget with the exception of productive capital investment.

Taken together, these two rules mean that in the second half of the next parliament spending on public services will be able to rise in line with growth in the economy.