If people want public spending they will have to pay for it ? or else they will have to decide to do without some hospitals, or heating in schools. I would be very surprised if it could be achieved through minor spending reductions"
Other ideas the NIESR came up with were
- raising the state pension age from 65 to 70 and phasing our benefits for the over-60s.
- freezing public sector pay for five years
- adding VAT on items that are still exempt.
More extreme policies such as these could secure the equivalent in government income of 2 per cent of GDP.