Almost four years ago now, we reformed the whole basis of economic policy-making. We took tough decisions early on to make the Bank of England independent, to put in place a proper fiscal framework, and to pay back the national debt. As a result, inflation is now at a 30-year low, the lowest in Europe. Long-term UK interest rates are around their lowest levels for over 35 years, converging with those of Germany. Having achieved economic stability we will take no risks.
Recent history shows what can happen when politicians gamble with our economic well being.
Thousands of small businessmen and women felt the consequences. There were over 47,000 bankruptcies in 1991. And GDP fell by one and a half per cent. At least one million with negative equity. Around a quarter of a million homes repossessed between 1990 and 1993.