All the main political parties in the UK seem to have reached a consensus, that the economic situation must mean cuts in public spending. This is alarming. Governments must understand that they cannot cut their way out of an economic depression; they have to grow out of it. The way to bring in higher revenues is for people to earn more, not less. If they cut, the reduction in demand will lead to lower tax revenues, and increasing costs through higher unemployment.
The government finances are certainly bad. It is not because of high spending on public services; it is because the government has bailed out the banks. The main way to recover that money is going to be from the banks, as they repay their loans. The idea that this has to be paid from tax or public spending cuts is a false choice. Either might be true in time, but this is not the time.