The Chancellor will announce a "once-in-a-generation" revolution in public spending inspired by Canada in the mid-1990s, when the government turned a budget deficit of nine per cent of GDP into a surplus.Read the rest here.
Canada brought public spending under control guided by the principle that people should ask "what needs to be done by government and what we can afford to do".
Mr Osborne and his Liberal Democrat deputy, Danny Alexander, will attempt to bring about a similar change of mindset in Britain.
The ambitious plan will be welcomed by those who believe swift and decisive action is necessary to bring Britain's budget deficit and spiralling national debt under control quickly.
However, it is likely to prove controversial with those who believe it could tip Britain back into recession and public sector workers who face losing their jobs.
David Cameron will warn today that the scale of the problem is worse than he thought and the potential consequences even more critical.
The Prime Minister will say that the "momentous" decisions he will take will have "enormous implications" that will affect everyone.