George Osborne has ageeed a further round of spending cuts for the year 2015-16 with his Government ministers, that will be announced in detail on Wedesday in his commons address. This will almost certainly involve a reduction in the number of people on the Government payroll but the armed forces will not be reduced in this particular round of cuts, though the civilian staff within  the Ministry of Defence may well fall under the axe. Osborne will also reveal the investment the government will be making in rail, road and internet projects.

Osborne feels that the UK economy is now "out of intensive care" but needs to stay on course and carry through the austerity progamme to the bitter end, that may well be the next election in 2015.