Spending Review: Chancellor outlines £11.5bn cuts in 2015
26 June 2013 Last updated at 20:20 BST
The Chancellor, George Osborne, has announced £11.5bn in spending cuts to come into force in 2015 - just before the next election.
The NHS, schools in England and foreign aid have been protected - but all other government departments are being asked to make big savings.
The cuts will see millions of public sector workers lose their annual automatic pay rises, and there will be a cap on total welfare spending for the first time, from April 2015.
James Landale has the details.