The biggest cut was made to the department that funds local councils. After three years of cuts, it now faces another 10 per cent reduction.
For authorities like Sunderland, that equates to another £100 million.
Watch Dan Ashby's report here:
As the Chancellor announced that councils will be hit the hardest, we went to Wearside to see how people are coping with the cuts.
Find out if you are among the people whose personal finances will be directly affected by George Osborne's Spending Review.
The cuts would have been less painful had the coalition not ring-fenced some large departments. So where does that leave everybody else?