The Government is now spending £120 million every single day just to pay off the interest on Labour's decade of debt.
Setting out a four year plan to put public services and welfare on a sustainable footing, the Chancellor prioritised the NHS, schools, security and the infrastructure which will help Britain's economy grow.
The choice, he said, was to invest in the future rather than the bills of past failure.
Speaking today in the House of Commons, George Osborne said:
"Today's the day when Britain steps back from the brink. When we confront the bills from a decade of debt. A day of rebuilding when we set out a four-year plan to put our public services and welfare state on a sustainable footing - for the long term.
"So that they can do their job - providing for families, protecting the vulnerable and underpinning a competitive economy. It is a hard road, but it leads to a better future. We are going to bring the years of ever-rising borrowing to an end.
"We are going to ensure, like every solvent household in the country: that what we buy, we can afford; that the bills we incur, we have the income to meet; and that we do not saddle our children with the interest on the interest on the interest of the debts we were not ourselves prepared to pay."