Chancellor George Osborne set out a four-year plan of cuts today which he said would drag the country ''back from the brink''.

Unveiling a comprehensive spending review which could result in almost half a million job losses over four years, Mr Osborne said: ''Tackling this budget deficit is unavoidable.''

The Chancellor told MPs: ''Today's the day when Britain steps back from the brink, when we confront the bills from a decade of debt.''

And he added: ''To back down now and abandon our plans would be the road to economic ruin. We will stick to the course. We will secure our country's stability. We will not take Britain back to the brink of bankruptcy.''

On the job losses that will result, Mr Osborne confirmed that the Office for Budget Responsibility had estimated that 490,000 could go over the four years.

But he sought to reassure the public, saying: ''Much of it will be achieved through natural turnover, by leaving posts unfilled as they become vacant. Estimates suggest a turnover rate of over 8% in the public sector.

''But yes, there will be some redundancies ... that is unavoidable when the country has run out of money.

''We feel responsible for every individual who works for the Government, and we will always do everything we can to help them find alternative work.

''In fact, in the last three months alone the economy created 178,000 jobs.''

Mr Osborne indicated that even the Queen was doing her bit.

He said she had agreed to a one year cash freeze in the Civil List for next year.

He added: ''Going forward, she has also agreed that total Royal Household spending will fall by 14% in 2012/13 while grants to the Household will be frozen in cash terms.''