Loosening public services squeeze requires tax rises or welfare cuts

<p>Internal Treasury projections leaked to the Conservatives imply that the rise in Whitehall spending on public services as a share of national income that we have seen under Labour to date may need to be completely reversed to fill the hole in the public finances - unless we see further tax increases or cuts in welfare payments - according to a new analysis by IFS researchers.</p><p>What would you do? Our <b><a href=" http://www.ifs.org.uk/ff/diysr.xls">DIY Spending Review</a></b> tool allows you to set your own plans for total spending and decide how you would slice the cake.</p>