The UK economy emerged from the 2008-09 recession with elevated public and private debt and high unemployment. Strong growth and macroeconomic stability in the run-up to the crisis had hidden a build-up of significant imbalances, influenced by overreliance on debt-finance and the financial sector, and booming asset prices. These imbalances need to be addressed to ensure a sustainable and balanced recovery. The government is pursuing a necessary and wide ranging programme of fiscal consolidation and structural reforms aimed at achieving stronger growth and a rebalancing of the economy over time.