Chancellor George Osborne has told Daybreak that "Britain's got to live within its means" because it "can't afford the current size of the Government".
Speaking about pay reforms for public sector workers, he said: "We've got to end these automatic pay rises, not the annual pay rises but the automatic moving up of the pay grades every single year.
"Again that's not fair to many of those on the public sector who aren't on those pay increases and people in the private sector who are again paying for it."
He added: "There will be pay rises, they just shouldn't have these automatic increases up the pay grades."
The country can't afford the current side of the Government, it can't afford to do all these things and at the same time it is borrowing huge sums of money and we've got to deal with that as a country."
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.