Mandelson: 'We face tough choices'

The Business Secretary, Lord Mandelson, has said that the government faces "tough choices" on public spending, reflecting the new economic reality.

The Business Secretary also hinted that even frontline public services might not be immune from any future review of spending.

Interviewed in advance of a speech in which he will say that the government will be "wise spenders, not big spenders", he acknowledged that some government departments will see their spending reduced as ministers try to bring down the level of public debt.