Chris Ratcliffe - Pool/Getty Images/Getty Images Europe
Britain's Chancellor of the Exchequer George Osborne (R) and Chief Financial Secretary to the Treasury Danny Alexander leave the Treasury building for the House Of Commons on October 20, 2010 in central London, England.
The British government announced 83 billion pounds, about $130 billion, of cuts today. Chancellor George Osbourne made the announcement in parliament.
"Today is the day when Britain steps back from the brink, when we confront the bills from a decade of debt."
He claimed the programme would restore "sanity to our public finances and stability to our economy", telling MPs: "It is a hard road, but it leads to a better future."
He said that 490,000 government employees would lose their jobs. The size of government offices in London would be cut by a third. The retirement age would be raised to 66 by 2020, years earlier than planned. Police will be cut, as will spending on local councils. The Queen's household will take a %14 hit. People in public housing will pay more rent.
The cuts are certainly not without their critics though.
Shadow chancellor Alan Johnson accused the Government of taking a “reckless gamble with people's livelihoods” which could wreck the economic recovery.