Today's Spending Review made worrying reading for public sector workers.
They will have their pay rises limited and council spending will be cut by 10 percent.
ITV News deputy political editor Chris Ship reports from Sunderland, where a large percentage of workers are employed by the public sector:
Shadow financial secretary to the Treasury Chris Leslie writes for ITV News in response to the Chancellor's Spending Review.
While the Conservatives and Lib Dem strategies are clear enough, Labour's response to government cuts is not yet obvious.
By excluding pensions and the benefits associated with the economic cycle, Osborne has put an automatic cap on a narrow range of benefits.