Mad maths

I've just seen John Denham suggesting that councils canprotect and improve front-line services while cutting costs. He said that these cuts will be 'behind the scenes'. 
How? Where? Does Denham seriously think that local authorities are awash with fat which can be cut without causing harm? If they are who is responsible given that his party have been in power for more than ten years?
Let's face it - we're stuffed, the cupboard is bare and Denham is one of the idiots responsible. That he thinks funds can be cut without reducing services demonstrates how poor his grip has become.