Paz, the problem there is that what seems like common sense with regards to the economy is actually completely counter productive. We tend to see government spending like a household or company budget and assume that yes when times are hard you tighten your belt. When it comes to government spending though, this is absolutely the wrong thing to do. Government doesn't just react to the economy, government is a major influencer of the economy. In hard times, companies are less likely to invest and the public have less money to spend so the economy shrinks. If government also cut spending, then they contribute to that economic decline. More people losing their jobs or having to move onto lower paid or part time jobs, less disposible income, less spending on projects which would incentivize companies to invest.
When the economy is struggling thats the time when government should be opening the purse not closing it. When things are going well we should be storing away money ready for the next time we need to inject new energy into the economy, but unfortunately the tories want to cut when times are hard, and Labouor never got their heads around the idea of saving when things are prosperous. Austerity though was absolutely the wrong direction to take, which is why the Tories financial predictions have been proved so very, very wrong time after time.