PM: tackling public debt has proved harder than thought

DAVID Cameron yesterday vowed to stick unflinchingly to the government’s deficit reduction plan as he promised new measures to boost the housing market and bring forward infrastructure projects, despite gloomy growth figures expected from the Office for Budget Responsibility next week.

He admitted tackling the public debt had proved “harder than anyone envisaged”, in an early sign that the government is unlikely to meet its deficit reduction target before the next election. But he said the coalition des not plan to the national debt burden with more borrowing.

Cameron confirmed plans for a “radical new strategy” to boost the flagging housing market, which involves the state underwriting mortgages for buyers of new houses.

He said: “When first time buyers on a good salary can’t get a reasonable mortgage the market grinds to a halt.”

And he said the chancellor, George Osborne, would use his autumn statement next week to announce measures to boost infrastructure projects.

“We must use all the tools at the government’s disposal to take a more strategic and proactive approach to infrastructure,” he said.