The first pangs of pain for Whitehall departments, and at least some public sector employees, came in the Budget on Wednesday as Gordon Brown, the chancellor, trimmed some pay awards and announced big cuts in the running budgets of several departments.

The cash is needed as the government heads into the toughest spending round since it came to power in 1997. The full comprehensive spending review - setting out spending plans between 2008 and 2010-11 – is not due until next year.