Pre-Budget Report

I have indicated to the hon. Gentleman that we would expect to start the process of cutting the deficit, or of reducing Government spending, in 2010-11. This Government are proposing to go on increasing Government spending. The cumulative impact of starting early, even in a modest way, is quite significant. Of course, Labour Members want to try to reduce this to a very simple issue. It is a complex balancing act. I totally accept that. Reducing the deficit is going to have to go on over many years until we get ourselves back into balance. It can go a little bit faster if the economy is growing more strongly. It needs to be mindful of the monetary policy position that the Bank of England is able to offer at any given time. It needs to be mindful of wider macro-economic circumstances.