The Government believes that it is the most vulnerable who are most at risk from the debt crisis, and that it is deeply unfair that the Government could have to spend more on debt interest payments than on schools. So we need immediate action to tackle the deficit in a fair and responsible way, ensure that taxpayers’ money is spent responsibly, and get the public finances back on track.

• We recognise that deficit reduction, and continuing to ensure economic recovery, is the most urgent issue facing Britain.

• We will significantly accelerate the reduction of the structural deficit over the course of a Parliament, with the main burden of deficit reduction borne by reduced spending rather than increased taxes.

• We will introduce arrangements that will protect those on low incomes from the effect of public sector pay constraint and other spending constraints.

• We will protect jobs by stopping the proposed jobs tax.

• We will set out a plan for deficit reduction in an emergency budget. We have created an independent Office for Budget Responsibility to make new forecasts of growth and borrowing for this emergency budget.

• We will make modest cuts of £6 billion to non-front-line services within the financial year 2010/11, subject to advice from the Treasury and the Bank of England on their feasibility and advisability. A proportion of these savings can be used to support jobs.

• We will hold a full Spending Review reporting this autumn, following a fully consultative process involving all tiers of government and the private sector.

• We will reduce spending on the Child Trust Fund and tax credits for higher earners.

• We will create strong financial discipline at all levels of government and place an obligation on public servants to manage taxpayers’ money wisely.

• We will reduce the number and cost of quangos.