The Liver Birds on the Liver Building, Liverpool
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Public sector cuts: How cities like Liverpool may fare

In Liverpool, like many cities across the UK, public sector cuts could have a massive impact on the economy - despite government assertions the private sector will fill some of the gaps.

Cuts implemented by the Thatcher government were instrumental in the Toxteth riots almost 30 years ago, and community leaders and police across the country are concerned similar unrest could stretch depleted police forces once more.

Robert Peston reports.

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