Speaking to ITV1's Daybreak, the Chancellor George Osborne said the prospect of six more years of austerity was a price the country had to pay.
We find ourselves in a very difficult situation.
We borrowed all that money in the good years, then we had the banking crash and now we're having to pay the price.
But there's no alternative other than to make sure Britain can pay its way in the world and that means difficult decisions to control our welfare bill, to make sure the rich make a contribution and to do everything we can to support those who want to work hard and get on in our society.
Britain may face further cuts and tax rises even after the next elections, the Institute for Fiscal Studies warned today.
While Chancellor George Osborne's Autumn Statement was mainly about spending cuts, there were incentives too but do the numbers add up?
The cap on benefits rises will mean a cut in real terms for people living on welfare and those on low incomes, as Penny Marshall finds out.