In March the Government's own Plan for Growth document warned "if we do not wake up to the world around us, our standard of living will fall, not rise." But actions speak much louder and the recent autumn statement makes things worse. Spending cuts will hit the north hardest and it is well documented that we are least resilient to economic shocks.
In the last financial year, the 12 least deprived authorities in England suffered budget cuts of around £5 per person but it was £88 in Gateshead. If "we are all in this together," some are merely dipping their toes and many are in up to our necks.
Last year the Office for Budget Responsibility predicted that 410,000 jobs would go but a year on losses are expected to be between 600,000 and 750,000 by 2015-16.
In the North-East already, councils have shed over 10,000 jobs, and 30,000 public sector jobs have gone. 142,000 people are on the dole in a population of only 2.5 million, with 12 to 15 people chasing each vacancy. There is clearly a divide in the nation: a divide ministers refuse to acknowledge.
Changes in working tax credit and child tax credit will have a harsh impact on those people who can least afford it, more greatly outside the south and changes to incapacity benefit and housing benefits are in the pipeline.
The spectre of regional pay is a huge concern for workers in the North-East, who will end up doing the same jobs for less pay and pension entitlements, in an economic race to the bottom.
Where are the private sector jobs and the growth that was supposed to replace public sector job losses in the North-East? They have not and will not happen, because Government's policies are sucking spending power from our high streets and our economy.
If anything, the private sector in the North-East is becoming poorer. We need a real rebalancing of the economy. Instead of borrowing huge sums to spend on dole and benefit payments, why not use that borrowing to invest in our economy, provide infrastructure, growth and create jobs in construction? We are not all in this together, and this stubborn Government must wake up to that before things needlessly turn from bad to much worse.
Newcastle Chronicle and Journal
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