Austerity cuts will bite even harder in 2015 – another £12bn will go

During five years of austerity, Britain has not experienced the wave of protest seen in other countries. That could change – this is a pivotal year in the race to reshape the nature of the state

George Osborne says the coverage of looming new spending cuts has been “hyperbolic”, but away from Downing Street there is a strong consensus that the cumulative effect of five years of austerity will make the next wave of cuts, in 2015, very painful.

Four more years of austerity is “a price that works for our country”, Osborne said as he outlined his strategy. The Institute for Fiscal Studies responded by warning that “colossal” cuts to the state would take total government spending to its lowest level as a proportion of national income since before the second world war. By the end of the process, “the role and shape of the state will have changed beyond recognition”, the think tank said. So far,