Page last updated at 12:05 GMT, Tuesday, 18 May 2010 13:05 UK

How do we fix finances if there really is "no money left"?

New Chief Secretary to the Treasury David Laws has revealed that his predecessor Liam Byrne left him a note reading: "Dear chief secretary, I'm afraid to tell you there's no money left."

The note may have been intended as a joke, but it is clear that the government is going to have to make tough decisions to sort out Britain's finances.

Newsnight's David Grossman examines Chancellor George Osborne's plans for a new Office of Budget Responsibility and his workings on how to tackle the deficit.

Broadcast on Monday 17 May 2010.

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