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    PaulB - the simple fact is that the government is not different to you. It cannot keep spending £4 for every £3 of income, it is as simple as that. if you were outspending income at that rate you would have to do exactly what the government is doing, cut spending.

    Some cuts will hurt, others wont be noticed - but it has to be done. The consequences for not getting government spending into shape are far worse than for doing so. Interest rates would shoot up, the cost of government borrowing increasing would mean the cuts, when they come, would have to be even deeper. Something has to give.

    The real lesson here is that government, like us, has to live within its means and cannot adopt again the kind of profligate spending polices that we have seen over the last 13 years.

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