David Cameron has warned that the UK faces painful cuts that will affect "our whole way of life" in dealing with the UK's record peacetime deficit.

The Conservative-Liberal Democrat coalition government has already outlined plans for £6.2bn cuts this financial year and is preparing for a Budget on 22 June.

The Prime Minister has not yet specified where the cuts will be made. Detail will be produced in the Budget and a three-year spending plan later this year.

"Because the legacy we have been left is so bad, the measures to deal with it will be unavoidably tough, but people's lives will be worse unless we do something now," said Mr Cameron.