Coalition government announces spending plans

We have shown that we have the resolve and determination to live within our means.  And we have set out to reinvigorate Britain's diplomatic engagement with the world, elevating our links with the fastest growing economies and championing Britain as a home for business and investment. We understand that economic recovery starts at home, but that we have to look beyond our shores for new opportunities and new partners.

The scale of the economic challenge is formidable. We inherited one of the largest Budget deficits in Europe and the G20. But we have a clear vision for the future of our country. We have chosen to spend on the country's most important priorities - the health care of our people, the education of our young, our nation's security and the infrastructure that supports our economic growth.