Con-Libs outline plans to tackle debt

Debt reduction is "the most urgent issue facing Britain," according to the Con-Lib coalition's Programme for Government, published today.

An austere statement announced a string of proposals designed to ensure 'taxpayers money is spent responsibly'.

Aiming to achieve 'deficit reduction borne by reduced spending rather than increased taxes', headline measures include the scrapping of Labour's proposed National Insurance hike, shielding low earners from public sector pay freezes and the creation of 'strong financial discipline at all levels of government.'

The government confirmed it would make cuts of £6 billion to non-front-line services, subject to advice from the Treasury and the Bank of England.

The statement also pledged to reduce spending on the Child Trust Fund, but did not propose its abolition.

The FSA will also see it's powers diminished as the coalition expressed the intent to 'reduce the number and cost of quangos'.

The introduction of these measures will be followed by a full spending review in the Autumn.