Chancellor George Osborne has begun delivering his Autumn Statement, telling MPs: "It's taking time, but the British economy is healing."
He added: "People know there are no quick fixes... but they want to know that we are making progress."
Mr Osborne said: "We are making progress. It's a hard road, but we are getting there. Britain is on the right track and turning back now would be a disaster."
He revealed that figures forecast the deficit will "continue to fall", telling MPs that since the election, 1.2 million jobs have been created in the private sector.
He reaffirmed a commitment to reducing the deficit, and to do it "fairly".