<p>Britain is in the midst of a fierce battle over government spending. With debts mounting rapidly, the ?700 billion annual bill is no longer sustainable. But cuts face a wall of opposition, with dire warnings that they will ravage our society: hospital waiting lists will grow, schools will close and the poor will tumble into a new Dickensian abyss. Yet much of what the government currently spends is wasted, and public sector performance is ofte...