George Osborne announces £83 billion of public spending cuts

In line with expectations George Osborne, the Chancellor of the Exchequer, today announced £83 billion in public-sector spending cuts which will come into play over the next four years. He also confirmed that around 500,000 jobs in the public sector would be at risk although the vast majority of these, spread over four years, would likely occur due to natural wastage whereby those leaving posts are not replaced. But is this enough?

So far we have had no comment from the credit rating agencies who will be looking at George Osborne's proposals in great detail. The £83 billion of cost savings is pretty much in line with UK government hopes although these were boosted by a further £3 billion today which the government believes can be saved due to "wastage" in various departments. When you also consider that the average budget reduction, stated at 19% by the Conservative/Liberal Democrat government, is below the level of 20% which the Labour Party had considered "fair" just a few months ago, how does this leave the Labour Party? Has George Osborne played a blinder or will Ed Miliband use this opportunity to distance himself from the previous Labour government?