Tory Lib Dem Budget will hit North families

The Region’s MP have today condemned the Tory-Lib Dem Coalition Budget which will hit working families across the North East and Cumbria.
Roberta Blackman Woods Labour’s MP for City of Durham and Shadow Business Minister said;

 “George Osborne and his Lib Dem colleagues have attacked public sector employment in this budget and we know that more people in the North East work in the public sector than most other regions – the figure is currently 23% – so cutting public sector pay over the coming years will have a disproportionately negative effect on the North East economy.

 “It is also disappointing that so little help seems to be forthcoming for the private sector in order to grow the economy.  Additional private sector jobs are essential not only for economic growth but to give those losing their job in the public sector an alternative source of employment.  Cutting support so deeply at this point in time could slow down economic growth and leave people no alternative but unemployment.  Clearly this would disastrous for the region.

“The Tory/Lib Dem approach to tackling the deficit stands in sharp contrast to Labour’s plans.  We had a plan to half the deficit but we would have done it sensibly and fairly.  This would have included an increase in National Insurance contributions rather than unfairly targeting middle-income families and the low-paid with the regressive VAT-hike.”

Labour MP for Middlesbrough South and East Cleveland, Tom Blenkinsop said:

“It is clear that the jobless count will soon hit three million - and a lot of that total will come from this region.  This is reinforced by an analysis made by the Financial Times today which showed that the announced deep cuts to benefits and key government departments will have twice the impact on family incomes in the North-East as in the Home Counties.”

Tom continued:

“The key issue is that this is a budget that will cut growth in the economy - and thus will only make the danger of a second recession much more likely as we have warned in the past.  The coming VAT hike, from 17.5 per cent to 20 per cent  will act as a direct curb on consumption - and that means cuts in manufacturing here and now.'

"The cuts in spending for key government departments sustaining the nation’s infrastructure - like transport - and which help business, will only accelerate these cuts."

"The cuts and caps across almost the whole range of welfare benefits will affect the poorest areas of the UK, again like here in the North East, whilst the pay freeze for all public sector workers earning over £21,000 will affect the North East proportionally worse than other, wealthier and Tory voting areas, of the UK"