Chancellor George Osborne chopped yet more away from public spending in his drive to control borrowing, kickstart the economy and erase the structural deficit in the Treasury's finances.
"Step by step, this reforming government is making sure Britain lives within its means," Osborne told the House of Commons during his spending review for the 2015/16 fiscal year.
"The decisions we take today are not easy - and these are difficult times."
Osborne added that the British economy is "back from the brink of bankruptcy".
IBTimes UK looks at some of the key facts and figures from his spending review.
Key spending review points:
- £745bn total managed expenditure in 2015/16
- £11.5bn in total spending cuts
- Within cuts, £5bn from efficiency savings
- Time-linked automatic public sector pay increases scrapped
- 144,000 public sector jobs to go in the year
- £2bn annual pot of funding for local enterprise groups to bid for
- Council tax frozen for another two years
- £50bn capital investment in 2015/16
- £3bn capital investment in affordable housing
- Measures to claw in £1bn from tax evaders
- Annual cash cap on welfare spending to be determined in budget
Whitehall department budgets in real terms:
Communities and Local Government: -10%
Business, Innovation and Skills: -5.9%
Home Office: -6.1%
Foreign Office: -6.3%
International Development: +1.1%
Culture, Media and Sport: -7%
Work and Pensions: -9.5%
Cabinet Office: -10.1%
Northern Ireland: -1.5%