Democracy returns to Government

10.14.55am BST (GMT +0100) Tue 22nd Jun 2010

In a few hours we will hear what the Coalition Government has in store for our national & personal finances. It is highly unlikely that we will enjoy the experience but let us just be thankful that, without the 'hung parliament' that all the pundits said would be a national catastrophe, the budget could easily be a lot worse. One senior treasury official is reported in the Financial Times as saying "The fact that there is another party involved means the whole process has been much more inclusive". Another said "There was even quite a big discussion in cabinet this week about it. I don't think that's happened before". [Click headline for more]

Accused by Labour of 'selling out' Nick Clegg said: "Every time you hear Labour say that, ask them why they covered up the details of the £44bn of cuts they themselves had planned. Ask them why they racked up so much debt that we could end up spending £70bn a year just on debt interest. And ask them why they created this fiscal bombshell in the first place by refusing to take action against the reckless banks even when Vince Cable warned of the risks they were taking. We have always argued that cuts would be necessary, but the timing should be based on economic circumstances, not political dogma. The economic situation today means that time has come. You will see the stamp of our Liberal Democrat values in tomorrow's Budget. But nonetheless, it will be controversial. This is one of the hardest things we will ever have to do, but I assure you, the alternative is worse"