 What is the deficit and what is the debt and why does it matter? The deficit is falling this year. Getting the deficit down. Budget deficit. Don't deal with the deficit. Running an enormous deficit. Tackle the debt and the deficit left behind by the last Labour government. You're going to hear a lot in this election about the debt and the deficit. Even some politicians can't get their heads around the big numbers involved. We do. We do have a number. What is it then? Well, as I've said, we're spending 150 billion more in infrastructure. We're going to spend a lot more money on the police. But that's not the total. That's not the total. I'm not going to bandy around figures. Right. The deficit is when the government spends more than it collects in taxes in a year. So it's a bit like an overdraft and at the end of the year the government has to turn it into a long-term loan. All parties agree you shouldn't run day-to-day services on an overdraft. You need to pay for them with taxes. Labour says tax the rich, property speculators, companies to pay for hospitals, schools and local council services. The Tories, well, they represent the rich and the property speculators so over the last decade they've cut public spending by £41 billion in real terms. Please leave my town. I will very soon. Everybody agrees now we need to spend more on GPs, on hospitals, on council services. But these cost money. Labour wants to raise that money through tax. The Tories, well, they won't say where any of the money they're promising comes from. And yet you can't tell me what the equivalent number is for the Conservatives. We had a budget last year which set the parliament. So all those figures... But we're interested about the next parliament, aren't we? So all the money that we spent in the last year, we had a budget. Fiscal, Phil says. Fiscal rules, OK. But what about the debt? Labour is promising to borrow £400 billion over the next 10 years to build new homes, hospitals, rail and green energy systems. That's more like a mortgage than an overdraft. And this is how it will work. The government will spend an extra £25 billion a year on wind farms, home insulation, eco-friendly transport systems. And on top of that, for the first five years, £30 billion a year to invest in schools, hospitals and new council homes. Now that is a massive amount. It's double what the Tories plan to spend. But to most families, a mortgage is also a massive amount. And at the end of it, you have a house. People ask, rightly, how are we going to pay it back? The answer is it'll take a long time, like a mortgage. The way you shrink the debt is to grow the economy over time. But what matters in the short term is the interest rate. And it's here that this country has a golden opportunity. It's never been cheaper for governments to borrow. In fact, interest rates on government debt are so low that central banks like the Bank of England are urging governments to borrow and spend even more. If we borrow money now on the cheap, we can create tens of thousands of decent jobs, renovate our country and in the process, stop climate change. If you're still confused, hit the comments button. All the figures we use are checked and from official sources. And we'll be making a few of these videos. So in the next one, I'll be asking if the rich can move their money to the Bahamas, how do we get them to pay more tax?