Premier's Political Editor has been crunching the numbers and gauging reaction to George Osborn's speech.
George Osborne has set out plans to cut a further £25 billion pounds from public spending after the 2015 election. That includes £12 billion from benefits.
In a speech, the Chancellor says the size of the state and the welfare system must become "permanently smaller".
Premier's Political Editor Martyn Eden has been examining the Chancellor's speech in detail:
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