The Chancellor George Osborne has set out the details of the Spending Review with health, education and areas identified as drivers of economic growth protected.
Osborne said that it had to stop wasting money to reduce the deficit, which the country is paying back at the rate of £120m a day, and it would swing the axe in those areas that it felt it could do without harming the economic recovery.
"Today is the day Britain steps back from the brink. When we confront the bills from a decade of debt and a day of rebuilding where we set out a four year plan," he said.
"The action we have taken since May have taken Britain out of the danger zone," he added.