It is my opinion that the spending cuts will be disaster for many of us (excluding those of "independent means" of course.)
The private sector will be unable to replace the losses in the public sector, and will in fact be seriously damaged. The effect on house prices will be at least a 30% reduction.
So my sealed envelope to be opened in mid 2012 states 5 million unemployed, 100k average house prices, and 25% VAT.
The first is a bad thing, the second is eventually a good thing.