I forward to you this message from a colleague at UCL, for your urgent attention, apart from what you hopefully may have done about this by other means (like writing to your local MP, which is usually very effective, please also visit www.saveastronomy.co.uk).
There is now an approved (e)-petition online to collect signatures regarding the funding situation for physics and astronomy. Petitions with sufficient number of signees are forwarded to the government who then needs to come back with a response.
Its quick and easy;
Please sign it and then forward this on so that it might reach critical mass.
In addition, write to your local MP at:
some background information:
http://www.strudel.org.uk/blog/astro/index.shtml (scroll down to the STFC item)
Obviously, please forward this to as many people as possible. A government review on this matter is planned by early January.
Edit: Please see over here for more pointers to more information about this problem.