UNCERTAINTY surrounds the full impact of Government spending cuts on Oxfordshire.

But there were growing fears of widespread job losses in the county’s public sector, including councils, hospitals, universities and the police.

Half a million public jobs will be axed because the “country has run out of money”.

That was the stark message from chancellor George Osborne as he announced £83bn in spending cuts yesterday.

And it will resonate with almost 50,000 public sector workers in Oxford.

Gawain Little, president of Oxford and District Trades Union Council, said the cuts would “devastate” jobs and public services as a protest gathered in Bonn Square last night.

He added: “There’s lots of fear and uncertainty. That will turn to anger over time.” Chris Mundy, tax partner at Oxford-based accountancy firm Grant Thornton, said: “The private sector will eventually create the jobs required to offset losses in the public sector.

“But economic restructuring on this scale will take at least a decade if not more.

“The spending review has confirmed what we have all been fearing for a while: UK households are in for a tough time.”

Oxford Brookes University spokesman Edward Reed said: “We are confident that, despite the cuts, we can maintain the high quality of our teaching and research. At a time when other countries are investing heavily in higher education, the UK must ensure its universities are in a position to drive economic recovery and growth.”

But there are fears local arts groups could fold.

Karen Simpson, artistic director of the Oxfordshire Theatre Company, said: “Many arts groups are looking at cuts in the region of 30 per cent. They are being hit by both cuts from central government and the money from local council.

“Last year we employed more than 50 people. I am sure many groups won’t survive and many people in theatre and the arts will never get their first job.”

Polly Cole, deputy director of the Oxford Playhouse, said: “We are concerned that the arts council will be cut by 30 per cent and wait to find out the implications for front-line arts organisations.

“Oxford Playhouse has a significant economic impact and is a flagship theatre in the region.”

Terry Sweeney, pictured, chief executive of schools computing company RM, suggested the Government announcement could turn out to be better than expected for the firm.

He said: “Our reading of the spending review is schools will see modest real-terms increases in their budgets and that is a lot more positive than many were expecting.

“Clearly, it is good news for our business, but it is also good news for the UK. Education is one of the ways we are going to return to prosperity.”

RM, based at Milton Park, near Didcot, has already seen job cuts as a result of the Government's scrapping of the Building Schools for the Future scheme, but Mr Sweeney said the business was growing internationally.

“There is a global trend for education ICT, which gives presents a healthy opportunity to sell the ideas and innovations, which is created here in Oxfordshire and our other UK facilities.

“So, while this is a challenging time that we live in, there are some encouraging trends which present a reason to stay positive.”

John Hewer, 96, from Headington is a retired Morris Motors worker.

He said: “From a pensioner’s point of view, it’s not as bad we thought.

“It is unfortunate the retirement age is going up.”

Married mother-of-one Catherine Warrilow, from Abingdon, said: “There is nothing that stands out in terms of families, but it is the uncertainty that is the biggest thing.

“I am relieved to see there is nothing in it about cutting maternity pay but that’s not to say more won’t come out in the next few weeks.

“The protection of the school budget is good. That is the next big step for us as Noah is two and next year we will be applying for a school place.

“Cuts to the police budget is a real shame. You notice them on the streets and if we lose them it will lead to a lack of community.”