We have therefore agreed that there will need to be: - a significantly accelerated
reduction in the structural
deficit over the
course of a Parliament, with the main burden of
deficit reduction borne by reduced spending rather than increased taxes; - arrangements that will protect those
on low incomes from the effect of public sector pay constraint and other spending constraints; and - protection of jobs by stopping Labour's proposed jobs tax.
If growth resumes and the
deficit reduction programme remains
on course, David Cameron will have every reason to expect Labour's performance before 2010 to be thought to be more at fault.