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George Osborne’s “Northern Powersham”; over £3 billion taken out of the North despite George Osborne’s “Northern Powerhouse” claims

North East £768m worse off under Osborne’s Northern Powerhouse


The Chancellor has only spent £402 million in Northern Powerhouse projects to date, and cut a staggering £3.9 billion from Northern councils since 2010, leaving a £3 billion deficit in the North of England.

The spending power of Northern councils (North East, North West & Yorks and Humber) has been decimated by £3.9 billion over the last five years, with councils in the North East £768m worse off in cash terms since 2010. This has led to huge cuts to essential services, such as care for the elderly, children’s services and health services.

Half of projects due for completion in the next five years were launched before Osborne announced the scheme in June 2014, including several projects that began under the last Labour government. Details in the Budget also reveal that no government money has actually been spent on specific “Northern Powerhouse” projects in the North East so far.

Jon Trickett MP, Shadow Secretary of State for Communities and Local Government and Shadow Minister for the North said:

“George Osborne’s Northern Powerhouse is clearly a Northern Powersham.

“He has left the North with a £3 billion deficit and yet claims to be building a Northern Powerhouse.

“The Tories have continually let the North East of England down, with severe cuts to services, increased deprivation and much lower levels of investment.

“It is also staggering that the Chancellor has claimed that so many projects are his when half of them were started before he even announced his “Northern Powerhouse” policy. Three were even started under Labour, which he is now trying to take credit for.

“It is clear now that the Northern Powerhouse was simply a rebranding exercise rather than a real plan for the North.”

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