Clegg vows to keep cutting after election
NICK Clegg last night promised to stick to the coalition’s deficit reduction plans after the next election, if the Lib Dems are still in government.
And once the budget deficit has been eliminated, Clegg said he would go further and run a surplus to start paying down Britain’s national debt.
The deputy prime minister said he recognises the government cannot “end boom and bust” and must prepare for a future downturn.
“If we go into another recession with a high debt to GDP ratio it will be much harder for us to keep the confidence of creditors, to keep the cost of borrowing down,” he said at the Mansion House.
Clegg’s words are also an attack on Labour’s plans to slow the pace of deficit reduction, and show the Lib Dem leader trying to stake out the centre ground ahead of the election.
He added that he stills favour some Labour-friendly policies, calling for more tax hikes to improve government finances.
“My party will continue to advocate a small levy on properties worth over £2m,” he said. Yet Clegg also pledged to raise the income tax threshold to £12,500 per year.