Better services while spending less?

When the Conservatives came to power in 2010 (with the Lib Dems), government spending took up 45% of national income. According to Chancellor George Osborne, it now takes under 40% and is forecast to reach 36.5% by the end of the Spending Review.

Spending less does not mean poorer services, he told Parliament, far from it. He then explained how he would square this tricky circle. Here’s a summary of his Autumn Statement.