"George Osborne has warned there will be no let up in his plans to reduce the deficit"
Well that's a good thing isn't it? We are high in debt, at least they are sticking to plans to get us out of it.
Our credit rating has been reduced a little? Not massive news, we are among many other large countries in the same boat.
Most of people (even some of the high officer) believe that they should work hard to payback the loan, and this created all the problems today, since saving in Pound's form is bank's debt, if you pay back the loan, there will be less money in circulation, means even heavier recession and bank failure
A much better alternative is to save in non-Pound form, like house/gold/bitcoin, as long as money get spent quickly, the situation is under control