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Thursday 2nd July 2009 | 13:58
David Cameron speech to Local Government Association Conference
Tory leader says a future government would offer councils greater freedoms in return for greater efficiency
“It’s great to be back at another packed LGA conference. Today we have, at most, eleven months before the next general election. There is no doubt that whoever wins that election is going to face the most difficult set of public finances any government has seen for forty years.
I don’t want to give you a speech full of figures, but let me just give you a few. According to some estimates we will borrow almost 14 per cent of our national income next year. That’s twice as much as when Denis Healey went to the IMF in 1976. One pound out of every four pounds that the Government spends is borrowed. Right now we are borrowing more in a month than governments used to worry about borrowing in a whole year.
We cannot go on like this. The economy is still in a deep and difficult recession. Yes, we’re hopeful for growth later this year – and there are some brighter signs.
But we’ve still got banks that aren’t lending…unemployment rising fast…and insolvencies going through the roof. So I think at this conference – when we are well and truly in an age of austerity – it is pretty clear what you deserve to hear. And that’s what you can expect from me if my Party wins that election…what I would expect of you…and what we should attempt to achieve together.
Let me take each in turn.
HONESTY AND LEADERSHIP
So, what can you expect from me? The first thing you are entitled to is some political leadership. That means a straightforward, candid assessment of the situation we face. It’s not leadership to deny that our public finances are in crisis. It’s not leadership to say spending on public services is going to rise when it isn’t. It’s not leadership to put off a spending review by saying there are a lot of uncertainties to take into account…when the only certainty is that our country is living way beyond its means, is saddled with a massive debt crisis, and desperately needs a strategy to get us out of the hole we are in.
What Britain needs is leadership that is clear about the depth of the problem we face…and honest about the fact that public spending needs to be reduced. I passionately believe our country will be able to cope with and come through the tough times ahead…but only if – and I mean only if - we tell people the truth about what’s happening.
We need to explain that we are all in this together … that everyone will need to play their part … and that everyone will pay their fair share.
So what does this mean for local government? When it comes to what to expect from me, there is good news and bad news.
The good news is that I want to give you a lot more power. The bad news is that there won’t be a lot more money. I’m not going to hide that from you – you’re smart people and you know the score. But before you get too depressed …. let me expand on the good news – and that’s much more power for local government.
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