David Cameron reaffirms urgency of deficit reduction

 

David Cameron has said that the Government needs to go “further and faster” to bring down the deficit after the loss of Britain’s coveted AAA credit rating.

His comments raised hopes among right-wing Conservatives that George Osborne might announce further spending cuts in next month’s Budget. But it provoked alarm among Liberal Democrats, who are pressing for a boost for major projects such as housebuilding to kick-start the economy. One Lib Dem said: “Further cuts would be madness. It would be another self-inflicted wound.”

Speaking at Prime Minister’s Questions, Mr Cameron said that the decision by the rating agency Moody’s to downgrade the UK was “a reminder of the debt and the deficit problem” the country faces. He said: “It demonstrates we have to go further and faster on reducing the deficit.”

His official spokesman played down the significance of his remarks, saying: “He was referring to the Government’s policy as is. He was not making a new statement.” He explained that the “further” element included the extension of the timescale for debt to fall while “faster” related to an expected “acceleration” in the fall of the deficit over the coming years.

The Chancellor announced in December that the Government would seek a further £10bn of cuts in the 2015-16 financial year. Despite Mr Cameron’s statement, Mr Osborne is likely to reiterate that target in his Budget, before the Cabinet negotiates how the savings will be achieved in a government-wide spending review to be completed by the end of June.

Cuts for Whitehall departments over the next few years will be extended for a further year into 2015-16. But a Cabinet battle has already broken out between ministers over where the cuts will fall. Theresa May, the Home Secretary; Eric Pickles, the Communities Secretary and Chris Grayling, the Justice Secretary, are among those arguing that their empires should not take another hit and that the pain should be shared more widely. Their move has put “ring-fenced” budgets – health, schools, overseas aid and defence equipment – under pressure, but it would be politically difficult for Mr Osborne to cut spending on the NHS and schools.

News
The author PD James, who died on 27 November 2014
people

Detective novelist who wrote Death comes to Pemberley passed away peacefully at her home, aged 94

Arts and Entertainment
Joel Edgerton, John Turturro and Christian Bale in Exodus: Gods and Kings
filmDirector said film would 'never have been financed' with ethnic minority actors in key roles
Life and Style
View of champagne glasses at a beach bar set up along the Croisette during the 66th edition of the Cannes Film Festival in Cannes on May 17, 2013
food + drink(and for now, there's a clear winner)
News
people
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
News
ebooksNow available in paperback
News
Irradiated turkey and freeze dried mash potato will be on the menu this thanksgiving
video
News
Andy Murray with his girlfriend of nine years, Kim Sears who he has got engaged to
peopleWimbledon champion announces engagement to girlfriend Kim Sears
Arts and Entertainment
George Mpanga has been shortlisted for the Critics’ Choice prize
music
Arts and Entertainment
Roisin, James and Sanjay in the boardroom
tvReview: This week's failing project manager had to go
News
Ed Miliband visiting the Holocaust museum in Jerusalem. The Labour leader has spoken more openly of his heritage recently
newsAttacks on the Labour leader have coalesced around a sense that he is different, weird, a man apart. But are the barbs more sinister?
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Langley James : CRM Services Manager; West London up to £40k

£35000 - £40000 per annum: Langley James : CRM Services Manager; West London u...

Langley James : IT Support; Residential Agency; Mayfair; up to £30k

£25000 - £30000 per annum: Langley James : IT Support; Residential Agency; May...

SThree: Associate Recruitment Consultant

£18000 - £23000 per annum + OTE: SThree: SThree are seeking Associate Recruitm...

SThree: Associate Recruitment Consultant

£18000 - £23000 per annum + OTE: SThree: SThree are seeking Associate Recruitm...

Day In a Page

Cameron, Miliband and Clegg join forces for Homeless Veterans campaign

Cameron, Miliband and Clegg join forces for Homeless Veterans campaign

It's in all our interests to look after servicemen and women who fall on hard times, say party leaders
Millionaire Sol Campbell wades into wealthy backlash against Labour's mansion tax

Sol Campbell cries foul at Labour's mansion tax

The former England defender joins Myleene Klass, Griff Rhys Jones and Melvyn Bragg in criticising proposals
Nicolas Sarkozy returns: The ex-President is preparing to fight for the leadership of France's main opposition party – but will he win big enough?

Sarkozy returns

The ex-President is preparing to fight for the leadership of France's main opposition party – but will he win big enough?
Is the criticism of Ed Miliband a coded form of anti-Semitism?

Is the criticism of Miliband anti-Semitic?

Attacks on the Labour leader have coalesced around a sense that he is different, weird, a man apart. But is the criticism more sinister?
Ouija boards are the must-have gift this Christmas, fuelled by a schlock horror film

Ouija boards are the must-have festive gift

Simon Usborne explores the appeal - and mysteries - of a century-old parlour game
There's a Good Girl exhibition: How female creatives are changing the way women are portrayed in advertising

In pictures: There's a Good Girl exhibition

The new exhibition reveals how female creatives are changing the way women are portrayed in advertising
UK firm Biscuiteers is giving cookies a makeover - from advent calendars to doll's houses

UK firm Biscuiteers is giving cookies a makeover

It worked with cupcakes, doughnuts and macarons so no wonder someone decided to revamp the humble biscuit
Can SkySaga capture the Minecraft magic?

Can SkySaga capture the Minecraft magic?

It's no surprise that the building game born in Sweden in 2009 and now played by millions, has imitators keen to construct their own mega money-spinner
The King's School is way ahead of the pack when it comes to using the latest classroom technology

Staying connected: The King's School

The school in Cambridgeshire is ahead of the pack when it comes to using the latest classroom technology. Richard Garner discovers how teachers and pupils stay connected
Christmas 2014: 23 best women's perfumes

Festively fragrant: the best women's perfumes

Give a loved one a luxe fragrance this year or treat yourself to a sensual pick-me-up
Arsenal vs Borussia Dortmund: Alex Oxlade-Chamberlain celebrates century with trademark display of speed and intuition

Arsenal vs Borussia Dortmund

The Ox celebrates century with trademark display of speed and intuition
Billy Joe Saunders vs Chris Eubank Jnr: When two worlds collide

When two worlds collide

Traveller Billy Joe Saunders did not have a pampered public-school upbringing - unlike Saturday’s opponent Chris Eubank Jnr
Homeless Veterans Christmas Appeal: Drifting and forgotten - turning lives around for ex-soldiers

Homeless Veterans Christmas Appeal: Turning lives around for ex-soldiers

Our partner charities help veterans on the brink – and get them back on their feet
Putin’s far-right ambition: Think-tank reveals how Russian President is wooing – and funding – populist parties across Europe to gain influence in the EU

Putin’s far-right ambition

Think-tank reveals how Russian President is wooing – and funding – populist parties across Europe to gain influence in the EU
Tove Jansson's Moominland: What was the inspiration for Finland's most famous family?

Escape to Moominland

What was the inspiration for Finland's most famous family?