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Get the economy growing is the best way to start, then over time streamlining the public sector etc. Wholesale slashes all over the place just as you emerge from a recession is not the way to go. There is a bit of a false dichotomy with the Tories they think it's either deep cuts or keep borrowing huge amounts.
All well and good but where does the money come from to sustain the losses, particularly as the UK economy is not growing? Trees?