Latest estimates are that 750,000 public sector jobs will go, with no visible expansion in the private sector to absorb them. This means a huge increase in the total benefit payed out, thereby defeating the object of the cuts. Add in redundancy costs and the removal of capital investment, and this looks like a recipe for severe deflation. Yes, the moral case for these cuts stinks to high heaven; but the economic case is equally ludicrous.
As I said above, the thing that really bothers me about this whole situation is the apportioning of blame to the utterly blameless; it isn't the fault of people on benefit, legitimate or otherwise, that we are in this mess. It's a bunch of rich, incompetent gamblers who are still trousering vast bonuses depite their abject failures.