Mr Oliver Letwin, the shadow Chancellor of the Exchequer, said that the Tories wanted to freeze government spending, except that on health, education and pensions, and would fund increases there from economic growth. On the day he made his remarks, a report by the government’s efficiency review, headed by Sir Peter Gershon, said that perhaps £15 billion could be saved by transforming the way public-sector bodies worked; his prescription envisaged centralisation, economies of scale and regulation by penalties.
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