Austerity May Last Beyond 2020, Says Cameron
David Cameron has admitted he cannot envisage a time when the austerity programme will end and failed to rule out spending cuts lasting until at least 2020.
The Prime Minister welcomed falling inflation as a good sign but admitted the economic crisis had been far worse than expected and could blight Britain for years.
Mr Cameron, in an interview with The Daily Telegraph, said: "This is a period for all countries, not just in Europe but I think you will see it in America too, where we have to deal with our deficits and we have to have sustainable debts.
"I can't see any time soon when the pressure will be off."
He added: "I don't see a time when difficult spending choices are going to go away. We are in a very difficult situation. There is some good news, we've just seen inflation fall again.
"But I don't deny for a minute that it is a lot tougher than the forecasters were expecting.
"We've had one of the longest and deepest recessions for decades in Britain. It was an incredibly tough set of circumstances and it has proved very hard to get out of those situations.
"But I think the plan we have has given people confidence that the Government has a grip and knows what needs to be done."
The initial austerity programme launched by the coalition was supposed to end by 2015, when the Tories and Lib Dems were hoping to claim they had turned around the economy.
It was extended to 2017 by Chancellor George Osborne last autumn because of ongoing problems, which have now seen the UK economy slip back into recession.
Cabinet Secretary Sir Jeremy Heywood warned last month that the fiscal reform challenge facing public services across the board could stretch as far as 2020.
In his interview, Mr Cameron insisted the continued need for belt-tightening did not rule out the possibility of tax cuts.
"You can do exciting and radical and Conservative things at the same time as having difficult overall spending choices," he said.
A new poll has suggested that public confidence in the coalition to deal with the economic crisis has more than halved since it came to power to just 28%.
However, the Prime Minister said he did not believe people had made up their minds.
He said: "I think the sense I get from people is, 'Look, I know you've got to cut public spending, I know you've got to get the deficit down, I know you've got to make sure our businesses are competitive. I know you've got to do all these things, but I want to know that as we get out of this mess, it won't be the same group of people that benefited in the past.
"There won't be a splurge of public spending, mass immigration, wasted money on welfare, bankers paying themselves enormous salaries when they're not delivering safe and effective banks. I want to know that in future a hard day's work means a hard day's pay'."
Labour leader Ed Miliband criticised Mr Cameron, claiming his warning was further "grim" news for an already-struggling public and that he should instead be focused on taking action.
"The Prime Minister simply telling people that there is nothing on the horizon and they are going to carry on as they are not only says something about his approach but it is not good for confidence either," he said.
what do you think?
This is no surprise. See where capitalism has taken us. It would not surprise me if this age of austerity is artificially engineered to last longer than it needs to. Remember, its during times of recession that the rich increase their wealth by buying the homes of the evicted and shares at rock bottom value. . . . . So just remember, the longer the suffering of common people continues, the more it suits the politicians and the rich. Capitalism in action.
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Believe me those with money couldnt give a s... about those without. They neither care or worse still, understand what it means to struggle each day to put food on the table or meet bills. Camerons never had a time of holes in his clothes or no money in his pocket Definately a case of I'm alright Jack
Does David Cameron speak to the man or woman in the street or does he just speak to the people that agree with every word he says when was the last time he walked round a supermarket or got on a bus or even walked down the street and spoke to anyone that was'nt hand picked by his advisors
Thats why m parkinson is advertising over fifties useless insurance and you get a free pen. great.
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Yet he continues to increase upon the £8bn he gives away overseas every year, and without our permission! Charity begins at home you idiot
So it does, his home not yours.
What an indictment of the rotten capitalist system, and its guardians. All they have to offer is more hardship for millions of working and middle class families. Yet as we struggle on under these disgusting cuts, we see the untold, obscene wealth that the rich are raking in at our expense - the bankers, the City traders, the media barons and their political poodles in parliament. Cameron (heir to £30 million of his father's yax-dodging businesses) is using this crisis as a shield to hide behind and to do exactly what was always on the Tories' agenda - cut public services to the bone, more privatisation, and hold down wages so the rich can have even more tax cuts.
Scandalously, the Labour Party holds out very little hope. All they promise is to keep to the CONDEM cuts programme - 'our hands are tied', they say, their cuts will 'only' be 'slower, nicer cuts'. They spout weasel words to try and keep our trade unions on side because they rely on our money. But they utterly refuse to promise to abolish the Tory anti-trade union laws that hogtie workers in resisting the cuts. Miliband may attend TUC demonstrations against the cuts, but continues to condemn strikes, when workers' action will make a difference. He is only the latest in a long line of Labour leaders who turn their backs on ordinary working people.
So, what should be done? If working class people are now deprived of a political voice to represent their views, why should our unions hand over millions of pounds of our members money to a party that will kick us in the teeth? What we need is for our unions to disaffiliate from Labour and join together with the many anti-cuts campaigners and form our own party of the left and implement genuine socialist policies that will benefit the millions not the millionaires.
There's £750bn resting in the banks of big busioness which they refuse to invest as they see no viable profits. We should take this money, together with the billions already given to the banks AND tax the wealthy properly while closing the tax loopholes. This money would then be used to invest in manufacturing, building new schools, hospitals, houses providing decent jobs with decent wages, better education and healthcare. The aim should be for full employment. We should also force MPs to take the average wage of a skilled worker and be subject to instant recall. They should be banned from taking jobs on the boards of companies in any capacity. The money is there. It's just concentrated in too few hands.
well Cameron you will be out of power in 2015 /
Are you sure about that ? perhaps he himself will not be in No.10 but someone just like him will be in his place with the same policies and priorities, just a change of wrapping paper.
Fingers crossed..it might be before that...if we're lucky!!
That was a forgone conclusion even before the election results were announced Who ever picked up to poisoned chalice left by labour were only going to be in for one term Sorting out the mess was never going to be popular Labour will be re -elected at the next election and drive to country deeper into the mire The public sector need cuts, I know I work for them
So why can't we get it together with the rest of Europe and cancel out our debts or at least force the lenders to halve them, wether they like it or not?
The Tory dream is coming true right back to Victorian days the working people ground down .No Unions ,no free Labour Party ,no free health service and low wages. We are sitting here and letting it happen.All the hard work by decent Trade Unionists and Socialists of your grand fathers generation thrown away. Honourable people who scarified every thing to bring a better life for worker`s .GET OFF YOUR KNEES AND START FIGHTING BACK.
well said .
..I HOPE SO !!!!!!!!
I have posted this elsewhere on this site, but I was so amazed about this experience that I thought it worthy of repeating here...so apologies to anyone who's already read it... I was walking past my local Job Centre Plus this morning at about 10 o'clock, and was rather surprised to see a security guard outside there who I'd got to know during my period of ten months of unemployment last year. I asked him what he was doing there on a Saturday and he informed me that the Job Centre has now had to start opening on Saturdays due to the increase in the number of people signing on!
With a bit of luck Camaroon will not be pm and we get a government who is democratic and not a dictatorship. This not elected government keeps shouting about cuts and yet give millions away to the failing EU to prop up banks and countries in the EU. The script writters of the mupet show could not dream up the farce that the government does. Lets just hope we get a government that works for the people of this country
It has been said many times before but the problem we have is there is no viable party to represent the working and middle classes. We need to take a leaf of the the well off capitalists book by educating and politicising our children. We have to ignite their interest in matters which affect them and prepare them to stand up for themselves and fight against this tyranny. Otherwise there will be nothing left for them and that will be our legacy.
Thanks a lot Blair, Brown, Balls and the rest of the irresponsible socialist idiots for getting us into this mess. They where like the political party version of Viv Nicholson....SPEND SPEND SPEND. Now us and our kids and their kids are going to have to pay for their useless, self centered, idiotic policies. Honestly, I truly believe that they should stand trial for the incompetence that they displayed over their 13 year reighn. And any person who continues to vote for the socialists should be forced to be tested for insanity.
1979 debt 44% in1997 debt 42% in2007 debt 35% .it took the Tories 18 years to get it down 2% .it took labour 10 years to get it down 7 % . then the banking crises started