Worrying news for anyone in the UK as two influential think tanks believe that austerity will be still be a big issue, not just for the elections in 2015, but all the way through until 2020.
The Chancellor originally said he would be able to balance the budget within four years, but that figure has been revised to 2017-2018 and no-one will be surprised if we get further revisions down the line.
So what does this mean for the average person? Well, it could mean more misery for some of us. More people are likely to lose their jobs and be unable to find work. Luckily, it has never been easier to start your own business.
Perhaps it will be down to us small business owners to drag the economy out of the mire?