Nick Clegg urges resolve in cutting debt

There must be "no blinking" on the Government's programme of deficit reduction, Deputy Prime Minister Nick Clegg will say today, as he insists the shared agenda of cutting debt is the "glue which binds this coalition together".







The Liberal Democrat leader, who has faced grassroots discontent over the scale of spending cuts in the wake of his party's poor showing in this month's elections, will insist the Government must "hold our nerve" and press ahead with its plans to restore economic stability.



But he will risk ruffling feathers among his Conservative coalition partners by appearing to trace the origins of the 2008 financial crisis to Margaret Thatcher's administration of the 1980s.



Calling for a "new, liberal economy" with a focus on investment and stability rather than speculation and debt, Mr Clegg will say that it is time to "turn the page on... an era that began with a big bang and ended with a monumental crash".



The Big Bang was the popular name for Lady Thatcher's 1986 deregulation of the markets, which opened the way for massive growth in the City of London's financial sector.



Speaking to the CBI in London this evening, Mr Clegg will call for a move away from the short-termist debt-driven economy of recent decades and towards a "less spectacular" but "more prosperous and more profitable" future.



He is expected to say: "The economy is out of the danger zone. But we need to hold our nerve. That means no blinking on deficit reduction.



"The Government has a plan to restore stability and we will stick to it."



Liberal Democrats and Conservatives "may differ on the nature and shape of the state, but we agree its finances must be sound," Mr Clegg will say.



"Tackling deficit is a necessary response to an immediate emergency. It is the glue that binds this coalition together."



And he will tell his business audience: "If we get this right, if we build the new, liberal economy I have described, we can begin to turn the page on an era of short-termism in our economy:



"An era that saw the return of boom and bust, driven by a banking system that risked everything for higher profits while households racked up huge private debt and the nation was run recklessly into the red;



"An era that began with a big bang and ended with a monumental crash.



"We can lay the foundations for an economy where people invest rather than simply consume, where stability is as valuable as risk... where people borrow responsibly and their governments do too.



"It may be less spectacular - sturdy and steady instead. And we can't get there overnight - this is a generation's work.



"But it is a better, more prosperous and more profitable future."

Start your day with The Independent, sign up for daily news emails
Have you tried new the Independent Digital Edition apps?
ebooks
ebooksA special investigation by Andy McSmith
2015 General Election
May2015

Poll of Polls

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

Recruitment Genius: Financial Controller

£40000 - £45000 per annum: Recruitment Genius: A fantastic opening has arisen ...

Recruitment Genius: Office Manager / Financial Services

£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...

Recruitment Genius: Medical & Economic Writer / Consultant

£23000 - £70000 per annum: Recruitment Genius: This is an opportunity for a Me...

Jemma Gent: Year End Accountant

£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...

Day In a Page

HIV pill: Scientists hail discovery of 'game-changer' that cuts the risk of infection among gay men by 86%

Scientists hail daily pill that protects against HIV infection

Breakthrough in battle against global scourge – but will the NHS pay for it?
How we must adjust our lifestyles to nature: Welcome to the 'Anthropocene', the human epoch

Time to play God

Welcome to the 'Anthropocene', the human epoch where we may need to redefine nature itself
MacGyver returns, but with a difference: Handyman hero of classic 1980s TV series to be recast as a woman

MacGyver returns, but with a difference

Handyman hero of classic 1980s TV series to be recast as a woman
Tunnel renaissance: Why cities are hiding roads down in the ground

Tunnel renaissance

Why cities are hiding roads underground
'Backstreet Boys - Show 'Em What You're Made Of': An affectionate look at five middle-aged men

Boys to men

The Backstreet Boys might be middle-aged, married and have dodgy knees, but a heartfelt documentary reveals they’re not going gently into pop’s good night
Crufts 2015: Should foreign dogs be allowed to compete?

Crufts 2015

Should foreign dogs be allowed to compete?
10 best projectors

How to make your home cinema more cinematic: 10 best projectors

Want to recreate the big-screen experience in your sitting room? IndyBest sizes up gadgets to form your film-watching
Manchester City 1 Barcelona 2 player ratings: Luis Suarez? Lionel Messi? Joe Hart? Who was the star man?

Manchester City vs Barcelona player ratings

Luis Suarez? Lionel Messi? Joe Hart? Who was the star man at the Etihad?
Arsenal vs Monaco: Monaco - the making of Gunners' manager Arsene Wenger

Monaco: the making of Wenger

Jack Pitt-Brooke speaks to former players and learns the Frenchman’s man-management has always been one of his best skills
Cricket World Cup 2015: Chris Gayle - the West Indies' enigma lives up to his reputation

Chris Gayle: The West Indies' enigma

Some said the game's eternal rebel was washed up. As ever, he proved he writes the scripts by producing a blistering World Cup innings
In Ukraine a dark world of hybrid warfare and murky loyalties prevails

In Ukraine a dark world of hybrid warfare

This war in the shadows has been going on since the fall of Mr Yanukovych
'Birdman' and 'Bullets Over Broadway': Homage or plagiarism?

Homage or plagiarism?

'Birdman' shares much DNA with Woody Allen's 'Bullets Over Broadway'
Broadchurch ends as damp squib not even David Tennant can revive

A damp squib not even David Tennant can revive

Broadchurch, Series 2 finale, review
A Koi carp breeding pond, wall-mounted iPads and a bathroom with a 'wellness' shower: inside the mansion of Germany's 'Bishop of Bling'

Inside the mansion of Germany's 'Bishop of Bling'

A Koi carp breeding pond, wall-mounted iPads and a bathroom with a 'wellness' shower