By George Parker in London and Chris Giles in Busan
(FT) -- David Cameron on Monday warned that public sector pay, pensions and state benefits would face a squeeze as he prepared the country for the "enormous implications" of dealing with the £156 billion ($225 billion) deficit.
With just over two weeks until the Budget, Cameron promised an unprecedented level of public and business consultation before unleashing cuts that would hit "every single person in our country".
Answering questions at the Open University in Milton Keynes, he said: "It will inevitably mean difficult decisions in large areas of spending, like pay, pensions and benefits".
Cameron claimed that Britain would be paying £70 billion ($101 billion) a year to service its debt within five years unless action was taken, and said that Greece served as an example of what happened when fiscal crises developed unchecked.
