One of the architects of the coalition government has warned that public services could deteriorate as a result of the Treasury’s deep spending cuts.

Liberal Democrat MP David Laws has urged prime minister David Cameron to ‘watch carefully’ developments over the next few years, as the combination of cuts and high marginal tax rates facing middle and low income households could undermine the coalition’s plan to stabilise the UK’s finances.

Public sector managers, he warns, will be key to delivering effective responses to the financial crisis.

Mr Laws played a key part in negotiating the Conservative-Liberal Democrat coalition following May’s general election, and briefly held the Cabinet post of Treasury chief secretary before standing down just weeks into the following revelations about his private life and his use of taxpayer funded entitlements.

Writing in the Daily Telegraph today, Mr Laws states the coalition has taken ‘decisive steps to deal with the greatest challenge facing our country – the budget deficit’.

But he warns the extent of the cuts required to tackle the deficit could undermine key services: ‘It is inevitable that some services will be under pressure,’ he says.

‘Public sector managers will have to adjust quickly to an era when greater efficiency will be needed to drive improvements, instead of relying on an annual tidal wave of cash.’