Today, UK Chancellor of the Exchequer George Osborne said he will cut debt interest costs by more than 5 billion pounds by 2015. The goal is to eliminate the 156 billion pounds deficit and bring back fiscal probity to the island nation. The Cameron government is going to cut public sector employment by 490,000 by 2014-15, freeze pay for the remaining employees for 2 years and keep their pension contributions to just 3%. (In the upside down world of fiscal metrics, this 3% increase will be called a reduction from a larger pension increase that was promised.) As Osborne points out with complete clarity: the job losses were "unavoidable when the government runs out of money."
According to the WSJ's David Wessel on NPR, the US would have to cut 280k federal government jobs this year to match what the UK is doing. Unlike the United States, the new government in the UK has more power to enact the policies that they were elected to do with the prime minister's stronger control over spending. This is what should be cheered in the UK.
Yes, they are raising some taxes.