Tax rises and spending cuts
The public spending squeeze does not take a grip until after the general election (the sees spending still gaily rising until 2010) but after that it will be vice-like.
Strip out automatic increases in welfare and pensions and the project real rise in spending of only 0.7% a year will in practice means real cuts for many departments. This will be all the more painful after the binge spending of the last decade or so.
The squeeze is on because the markets -- those who finance our debt -- are worried that borrowing will get out of hand and want to see a programme that gets debt back to more normal levels. That means whoever wins the next election cannot avoid tax rises and spending cuts.
The debate about spending has already begun. Ministers still talk in terms of efficiency savings, though everybody knows that would be inadequate.
David Davis, former shadow home secretary, using the freedom of the backbenches, suggests a stop to the ID cards, child benefit to be means tested and a debate about renewing a full-blown Trident.
Others have their own shopping list. Vince Cable agrees with a re-evaluation of Trident and also wants to reduce the number of students in higher education.
So the debate has begun, which is just as well since cuts will be the language of the new politics of austerity. We will get a measure of the debate and where it's going when we're joined by Mr Davis and Mr Cable on today's Daily Politics. Get a taste of the shape of politics to come.
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