Department-by-department - the winners and losers

Which departments fared worst in George Osborne's spending review?

Public sector workers will lose their automatic right to annual pay increases. “Automatic progression pay” is “antiquated” and will be gone by 2015-16, although armed forces will be excluded from this reform.

The Shadow Chancellor Ed Balls argued that the economy was still flat-lining and described the UK as suffering from “the slowest recovery for 100 years''. He said the Chancellor had failed to deliver on his promise to get Britain's economy back on its feet, necessitating the cuts being made today.

Business Secretary Vince Cable praised the spending review, saying that it prioritised and protected growth. "I made it clear that I would fight for a deal that ensured the government had a credible growth story", he said. "We have secured a robust funding package for science and innovation, skills and apprenticeships and more money for the regional growth fund, creating jobs outside of London, and the Green Investment Bank."

DEPARTMENT BY DEPARTMENT

The Treasury and Cabinet Office

Both will see their spending reduced by 10 per cent.

Local government

Eric Pickles will see a ten per cent reduction to his budget, having already reduced spending through out his department by sixty per cent.

Councils will be allocated funding in order to freeze council tax for the next two years, which is expected to save £100 on average.

Osborne has said the Government will give councils more flexibility over their assets and push for a greater integration of local emergency services.

Culture, media and sport

Culture Minister Maria Miller's department faired better than was expected by the arts world, and will face cuts of 7 per cent. Elite sport will continue to be protected and Arts Council England and museums will take even less of a cut at 5 per cent.

Foreign Office

William Hague will see the budget for his department slashed by 8 per cent.

Defence

Defence was another department largely protected from reduced spending in the budget and will maintain it's resource budget in cash terms at £24bn.

The defence equipment budget will be £14bn and will grow by 1 per cent in real terms in the upcoming years. There will be no reduction in the numbers of soldiers, sailors or airmen, but the civilian workforce will see cuts.

Home Office

Theresa May will see the Home Office resource budget reduced by 6 per cent to £9.9bn, but this will not affect the counter-terrorism budget.

Intelligence services

Despite the Home Office taking a cut, funding for the intelligence services will instead be increased by 3.4 per cent.

Ministry of Justice

The departmental budget of the Ministry of Justice is among those hardest hit, and will be reduced by 10 per cent.

HM Revenue and Customs

HM Revenue and Customs resource budget cut by 5 per cent, but extra resources provided to tackle tax evasion are expected to raise £1bn, if not more.

Department for Transport

The Department for Transport will be expected to make 9 per cent savings in day-to-day spending, but receive the largest boost of any department to its capital budget, which rises to £9.5 bn - to be repeated every year until 2020.

There will be ”the largest programme of investment in roads for 50 years and in railways since the Victorian age“.

The Government will ”look at the case for“ the Crossrail 2 link in London and give mayor Boris Johnson almost £9bn in capital spending and additional financing power by 2020.

Department for Energy

The Department for Energy will see an 8 per cent reduction in spending.

Department for Environment

They will undergo a 10 per cent reduction, but there will be a ”major commitment'' to new flood defences for the rest of this decade and these will not be affected by the cuts.

Department for Business

However, the Department for Business capital investment will increase by 9 per cent, including a “huge investment in science”.

Department for Education

Education Department were among the few to emerge with a higher budget, which looks set to increase to £53bn.

£21bn will be invested in 20 new schools and 20 new university technical colleges over the next parliament.

Funding will also be allocated for the free school programme, which will pay for 180 new free schools in 2015/2016.

The 'pupil premium' invested in students from low income families will remain protected.

Department for International Development

The Department for International Development budget is now set at £11.1bn for 2015/16, allowing the Government to keep their commitment to spending 0.7 per cent of national income on aid.

Department for Health

Health was one of the areas ring fenced by Osborne and the NHS budget for 2015/16 will be £110bn, up by 0.1 per cent annually, while capital spending will rise to £4.7bn. There will also be new investment in mental health and funding for new treatments for prostate and breast cancer.

Some parts of health and social care budgets are to be brought together, so that by 2015/16 more than £3bn will be set aside for integrated services.

Department for Work and Pensions

The Department for Work and Pensions have committed to saving running costs of 9.5 per cent. Pensioners living abroad during winter will not be eligible for winter fuel payments, and temperature tests will be conducted on properties from 2015 to ensure pensioners in hot countries do not receive it.

A new welfare cap to be set each year at the Budget for four years, applying from April 2015, which will trigger a public warning from the Office for Budget responsibility if the Government looks set to breach it because of a failure to control welfare. Housing benefit, tax credits, disability benefits and pensioner benefits will be included in the cap, but the state pension will not.

A new Upfront Work Search system will require claimants to provide a CV, register for an online job search and begin looking for work before receiving benefits. Single parents with three and four-year-old children will be required to attend job centres regularly and prepare for employment.

There will be a new seven-day wait before claiming unemployment benefits and all job seekers will have to attend the job centre every week, instead of on a fortnightly basis. Claimants who do not speak English will to be required to attend language courses or face benefit cuts.

Scotland, Wales and Northern Ireland

Scotland, Wales and Northern Ireland are now required to make resource savings of 2 per cent, with a budget for Scotland of £25.7bn, Wales £13.6bn and Northern Ireland £9.6bn.

Additional reporting by PA