We’re going to have to work longer and harder, but there are sweeteners to the Chancellors’ cuts and key areas, such as health, have been protected. The deepest savings have to be made in bureaucracy, so it’s not all bad.
Good news
Science spending frozen (it was expected to be cut)
More money for flood defence
Free museum entry retained
World Service to be funded by BBC
TV licence frozen for six years
£200m funding for wind power
Severn Barrage scrapped
Direct funding to schools in England to be protected and enhanced
Business department to save #400m in admin and axe 24 quangos
New cancer drug fund
Police cuts directed at bureaucracy, not manpower
Overseas aid budget protected; aid to China and Russia to stop
Crossrail project to go ahead in London
Compensation to Equitable Life policy holders
Winter fuel allowance, bus passes and TV licences for the elderly protected
* Country Life makes a fantastic Christmas present: Give Country Life for Christmas this year and save up to 30%
Bad news
17,000 jobs lost across armed forces, plus 25,000 MoD civilian staff
15% cut to spending on core arts programmes
Harrier jump jets and Ark Royal aircraft carrier scrapped; Nimrod spy planes cancelled
University funding cut
Rise in regulated cap in rail fares to 3% above inflation
State pension age to rise to 66 for men and women
Cuts to child benefit for higher earners
