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David Cameron came to the New City to give a speech about the economy and the debt crisis at the Open University.
The Prime Minister and Chief Secretary to the Treasury Danny Alexander set out plans for tackling the country's deficit and growing debt.
He told the audience of journalists and people from the OU that the scale of the debt is bigger than previously thought. He says country owes £70 billion - which means interest payments will cost more than spending on running schools in England, climate change and transport put together.
Mr Cameron also criticised the previous government - saying there's a lot of money being wasted inside government departments.
The Prime Minister said cutbacks are unavoidable - but he promised that people who most need help won't suffer under the coalition government's plans.