George Osborne insists that Britain is on the right track and the economy is healing, but he is offering a longer road to recovery with more cuts.
Amongst the mix of measures was a boost for capital spending, and a squeeze on welfare payments.
Scotland Tonight discussed the developments with Conservative MP David Mundell and the Labour MP and Shadow Scottish Secretary Margaret Curran.
political commentator and former Liberal Democrat special adviser Christine Jardine. And joining us from Edinburgh is the economics commentator and former SNP parliamentary candidate George Kerevan.
More About Scotland Tonight
- Is the G8 a talking shop for world leaders or capable of change?
- Greg Hemphill and Robert Florence prepare for wrestling bout
- Watch a live stream of Scotland Tonight: Scotland's current affairs show
- Moors Murderer Ian Brady 'suffers from paranoid schizophrenia'
- What does the future hold for Hearts as administration looms large?
- Are child beauty pageants harmless fun or sexist and exploitative?
- Can Hearts be saved from the brink or is it too late for the club?