Britain faces massive cuts in public spending of 20 percent and more which will dramatically affect public service provision in almost every field, caused directly by the Labour regime’s massive overspending on wars, foreign aid and immigration.

Currently, the UK’s budget deficit is on track to reach 12.7 percent of the Gross Domestic Product (GDP) this year, and 13 percent in 2010 according to figures released by the International Monetary Fund. The IMF also predicted that Britain’s debt may double to almost 100 percent of its GDP in the next five years.

Despite Gordon Brown’s denials that spending cuts are looming, Britain’s most senior civil servant has contradicted him and has predicted the 20 percent cut.

Cabinet Secretary Sir Gus O’Donnell said in an interview that “some departments would suffer more than others” as a result.

Asked whether he agreed with a policy adopted in Canada, where spending was cut by 20 percent and some departments had suffered greater reductions than that, Sir Gus replied, “You could envisage a situation where you go for deeper dives on this, most certainly.”

Mr Brown’s denials of cuts has also been contradicted by his deputy-in-all-but-name Lord Mandelson, who, wearing his Business Secretary hat, predicted this week that Britain faces a decade of public spending “constraints” to “rebalance” its finances.

Sir Gus suggested that lessons could be learnt from the Canadian government, which cut its spending by 20 percent over four years to lift the country out of its 1990s recession. Several Canadian politicians have held seminars in London recently, attended mainly by Shadow Cabinet ministers and officials. “There are some lessons for us . . . it was certainly an interesting model,” the Cabinet Secretary said.

One of the first cuts was the cancellation of a major IT project which has already cost the taxpayer a cool £24.4 million. The Cabinet Office revealed that phase two of the so-called SCOPE IT project, designed to improve collaboration between the security and intelligence agencies, has been scrapped.

The budget overspend was severely aggravated by the Government’s bailing out of Northern Rock and other financial institutions to the tune of at least £55 billion, the wars in Iraq and Afghanistan which together have cost an estimated £20 billion, and the annual cost of immigration which is estimated to be in excess of £18 billion.