I picked deeper cuts and lower taxes, the lesser money the government has the less it has to do stupid things.
Personally I think there needs to be very deep cuts across the board, these cuts has to be done smartly though as you can't balance the nations' books on the poorest of the country (though you could on the scroungers). There are many things that could be cut, for starters reducing all the unnecessary redtape and looking into all that PFI contracts that essentially are overpriced junk to keep Liebour linked companies happy. Pork-barrel politics also should come to an end, the recent aircraft carrier fiasco should serve as a very good lesson (though I'm doubtful a lesson would ever be learned)
Borrowings, you can't solve a debt crisis by spending borrowed money. I rather the deficit be brought down or better yet completely eliminated or where one exist it should be minimal and under inflation. If there needs to be borrowing then it needs to be for a very good purpose and one that brings good monetary returns, in an economically viable manner. But as of now borrowings should be lowered or even eliminated as the interest itself on existing debt is going to strangle the public purse and in reality what is happening in Greece can easily happen in UK too if you start spending recklessly and stupidly like those idiots did.
Taxation, one thing to address before we go into taxation is we need to look into other aspects of the economy, why exactly is every damn thing so damn expensive in UK. It all boils down to the endless redtape that taxes has to finance. Remove them, in fact all the stuff mentioned in the Beecroft report should be implemented not shunned. Then implement what the Institute of Directors suggested. A low tax economy with lean and efficient government is the best way out of an economic crisis especially in a saturated / developed economy like UK already is.