Budget 2013: Willetts on spending and Thatcher taxes

The government has increased spending on capital projects said Conservative minister David Willetts, who said it "must stick to the economic policy and programme" it has laid out.

He was responding to calls from Liam Fox for a spending freeze and from the CBI who want more house building.

The universities and science minister said the government wanted to see more homes built, and explained how the Funding for Lending scheme was working.

And he recalled how Margaret Thatcher, who he said had inherited debts from a previous Labour government, increased taxes in 1979 and later budgets. He claimed the coalition's tax and spending plans were "more ambitious than Mrs Thatcher".

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