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

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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