Impact Of Spending Cuts Would Exacebate "North - South Divide" - New Research Shows And Nick Clegg Defends Government Plans
Source: eGov monitor - A Policy Dialogue PlatformPublished Thursday, September 9, 2010 - 09:13
A BBC survey of English regions published today shows that the spending cuts would affect Northern England and the Midlands most. The study conducted by Experian states that Middlesborough would face the worst impact of the spending cuts followed by Mansfield, Notts and Stoke-on-Trent.
The Deputy Prime Minister Nick Clegg warned that the economic recovery would be "choppy and uneven", however he pointed out that the Government's plan to cut spending would e distributed over four years. Mr. Clegg argued that there would be no "sword of Damocles that's going to come down straight away".
"What we need to do is to put things in place, even as we take difficult decisions, which over time will rebalance the economy," Mr. Clegg told BBC Radio 4' Today Programme this morning.He argued that the Government is focused on boosting private sector growth so it can absorb the impact of the public sector cuts through various measures including the NI breaks for firms in certain areas of the country along with the £1 Billion regional growth fund. The Deputy Prime Minister also pointed out that even after the Comprehensive Spending Review to be announced next month, the public sector would be spending more than it currently spends. He asked for patience as the Government is working to "rebalance the economy. That won't be something we can do overnight".
Paul Kenny, GMB union General Secretary said: “The economic recessions of the 1980s and '90s, made far worse by the monetarist ideology of the then Tory Government, ripped the heart out of the UK’s manufacturing industry.
"The destruction of jobs left a legacy of high unemployment and high levels of incapacity benefit claimants in the old industrial areas. This survey shows that this new Tory Lib Government public spending cuts will leave these areas reeling in terms of job cuts and yet again single them out as the main victims of public services cuts.
"The upcoming conference season provides an opportunity to remind the electorate that it was the excesses of the bankers not high public spending that caused this recession.
"It is not too late for delegates to the Liberal Party Conference to insist that their MPs stand by their party’s position at the General Election that there should be no public spending cuts until the recovery is fully underway.
"The deficit in public finances is mainly the outcome of the loss of 6% of national output because of the recession. There will be major campaigns mounted across the country to stop the mindless destruction of jobs and services by a Tory Party hell bent on using this deficit to pursue the ideology of a smaller state.
"This survey pinpoints the parts of the UK most at risk yet again to Tory ideology and GMB will be at the forefront of the campaigns to defend jobs and services.”






