Austerity casts an ever-longer shadow over Tory and Labour economic policies

The extent of Tory spending cuts could prove unpalatable for voters - and leave a Labour government with a huge hole

One of the most striking pieces of recent polling showed nearly 80% of Britons think public services have deteriorated in the last decade. This would seem an electoral gift to Labour. But as this week's autumn statement shows, the long shadow of austerity is hugely problematic for both parties.

Jeremy Hunt's de facto budget was, even by the usual standards of such events, something of a smoke-and-mirrors affair, boasting of big tax cuts while contributing to a fiscal mix in which the average household will be worse off.