Sam Bowman, the Adam Smith Institute's Head of Research, argues on that Jeremy Vine Show that we should look to Germany and its austerity combined with growth. He points to Germany's labour market reforms, making it easier for firms to hire and fire people, reducing taxes on labour and reducing public expenditure. Growth comes from the private sector not the state. 

You can listen to his debate with Lindsey German on BBC Radio 2' Jeremy Vine Show here (from 6mins in).