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Job loss risk as spending cuts loom

14 October 2010 Last updated at 12:38 BST

Almost a million people could lose their jobs as a result of upcoming government spending cuts, according to a new report by consultants PWC.

Their projection comes as many business leaders argue that funding for big public projects must be maintained to avoid choking growth in the years ahead.

It is a dilemma that will be at the heart of government decisions on spending cuts next week.

Stephanie Flanders reports.