A lot of people in the public sector are currently panicking about losing their jobs, or almost as bad, being 'privatised' with the accompanying lowering of pay and conditions.
This will not only puts hundreds of thousands of public sector workers on the dole, it will hit private business as well.
I expect unemployment to soar. Labour would have made their cuts more gradually and the pain would have been shared more equally with higher growth and tax rises taking up some of the pain. The Con Dems have to make their cuts quick and hope for recovery by the election in 2015 (if they last that long). They have agreed to cut the deficit with spending cuts rather than tax rises. We shall see what happens. The last Laboiur government was in fact the most successful government at cuttin the deficit. It rose under Thatcher. People confuse tax cuts for the rich with cutting the deficit. All Thatcher managed to do was use the revenue from North Sea Oil and Public sell offs to fund the inequality gap - cutting taxes for the rich and benefits and wages for the poor. I expect the Con Dems will do pretty much the same. Although I am hopeful the Lib Dems will moderate it a bit.
This is going to hurt a lot