Vince Cable, Liberal Democrat Chancellor, speech to the Liberal Democrat Party Conference 2009

The video discusses the financial state of the country, highlighting that while it is not bankrupt, there are significant issues with public finances. The government is spending beyond its means, with tax receipts at a historic low. The budget deficit is not just a result of recession but also structural problems. Spending cuts could harm public services and investments, particularly in social housing. The speaker suggests setting priorities and deciding government roles as an alternative approach.

What are the potential consequences of cutting public spending in the usual way?

What alternative approach does the speaker suggest for managing government priorities?