In a keynote speech at the Open University, David Cameron has said that tackling the budget deficit is the most important task facing Britain.
He said that the overall scale of our massive deficit and growing debt is even worse than predicted and now stands at £770 billion.
The Prime Minister outlined three reasons for dealing with the country's debt:
-
The more government borrows, the more it has to repay
-
Investors do not have to put their money in Britain - they will only do so if they are confident the economy is being run properly
-
If the deficit isn't tackled, higher interest rates will hurt every family and every business in the land.
The Prime Minister said, "Unless we act now, interest payments in five years' time could end up being higher than the sums we spend on schools, climate change and transport."
And he added, "We are all in this together, and we will get through this together. We will carry out Britain's unavoidable deficit reduction plan in a way that strengthens and unites the country."
On Tuesday, the Chancellor and Chief Secretary to the Treasury will publish the framework for this year's Spending Review. This will outline the Coalition's plans to engage the whole country in the difficult decisions that will have to be taken.
Read David Cameron's speech in full.