Financial Discipline and Tax Cuts Can Steer UK Through Crisis Lib Dems Advise

9.40.28pm GMT Sun 10th Feb 2008

Lib Dem Leader Nick Clegg has called for a new era of financial discipline

In his first major economics speech as Liberal Democrat leader, Nick Clegg has called for a new era of financial discipline, an end to tax rises and an economic stimulus package of tax cuts for low and middle income earners, to steer Britain through the coming economic turmoil.

In his speech on "Liberal Economics and Britain's Future", Mr Clegg extended the Liberal Democrat spending review to find up to £20 billion of government spending that can be scrapped, with the money reallocated to Liberal Democrat priorities.

Lib Dem Leader Nick Clegg conveyed "The Liberal Democrat approach to the economy, and to public spending, will always be responsible. First and foremost, we need to accept that our fiscal position is in such a mess that we must be extremely firm on public spending. We must ensure that the rise in home repossessions we have already seen does not become an epidemic. If we don't, fire sales will turn a housing market slowdown in to a full-on slump, with potentially dire consequences."