Region has lost £169 per person in Government funding, think tank reveals (From The Northern Echo)
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Region has lost £169 per person in Government funding, think tank reveals
8:50am Friday 3rd February 2012 in News
FIGURES have been released revealing how the North-East has been affected by Government spending cuts, while richer parts of the country have escaped the worst of the pain.
The region has lost £169 per person – 12.6 per cent of its funding – in the first two years of the Coalition’s austerity drive, according to the independent Institute for Fiscal Studies (IFS).
The South-East experienced cuts of only £47 per person – 4.6 per cent – the think tank found.
The figures fuelled criticism over David Cameron’s claim that “we are all in this together”.
Tom Blenkinsop, the Labour MP for Middlesbrough South and East Cleveland, said: “The statistics bear out what we know – that this is another slap in the face for the North-East from a Tory government.
“The Government has been wholly disingenuous about its spending cuts while, in reality, protecting key Tory areas over traditional Labour areas.”
According to the IFS, the steepest cuts per person have been made in London (£221), but the North-East has suffered the biggest reduction as a proportion of overall spending, at 12.6 per cent.
Yorkshire, meanwhile, lost about £130 per person – the fourth biggest cut and about 11 per cent of funding.
The IFS said most of the North-East cuts were made in local government, with poorer councils more dependent on Treasury grants.
Communities Secretary Eric Pickles has repeatedly said his funding settlement was protecting poorer areas.
The study found that a tenth of councils were planning increases in spending.
The IFS said: “Over-represented among this group are local councils covering more affluent areas, particularly in the South.
“Overall cuts in local government spending (excluding education) are largest in both absolute and proportionate terms in the high-spending regions of London, the North-East and the North-West.
“They are by far the smallest in the low-spending region of the South-East.”
Amid a looming crisis in social care, the report stated: “Real expenditure on social services is being cut in all areas except the South-East of England (where it is increasing by 0.6 per cent).”
The IFS also gave some backing to Labour’s key economic argument, by arguing that the case for a short-term fiscal stimulus to boost the economy was stronger than a year ago.
A Government spokesman said the average North-East household still received £2,220 – compared to £1,915 in the South-East.
He said: “The settlement is fair between different parts of the country – North and South, rural and urban, metropolitan and shire.
“Funding is being directed to where it is needed most, so councils can protect the front-line services people rely on.”
Comments(4)
Taxpaying Homeowner
says...
11:40am Fri 3 Feb 12
Northern councils probably have less contributions by their residents and higher outgoings due to the reliance on Housing Benefits and CT benefits.
Think that you will also find that these cuts are across the board but sloppy journalism has spun this to be 'per person' drop in the full knowledge that there is a higher concentration in the South.
Personally I'm sick to death of subsidising layabouts and others without the inclination or imagination to help themselves. Especially when I have to travel 700 miles a week to provide for my family at a decent level.
Jolly Roger
says...
1:01pm Fri 3 Feb 12
IE our pension is a benefit which our ancestors did not get.
Taxpaying Homeowner
says...
9:06pm Fri 3 Feb 12
I believe that State Pension is a central government payment.
I'm not into targeted insults and there was no offence intended. The point I was making is that there are more people in the south and less of a drain on Local Authority funds in the majority of areas. The more that goes into the pot means less of a subsidy by the Government....
Mooochas says...
11:11am Fri 3 Feb 12
This Government has little experience of unemployment or life on benefits; in fact, of any economic hardship whatsoever. Twenty-two out of 29 cabinet ministers (76 per cent) are millionaires, 19 out of 29 (66 per cent) were educated at private, fee-paying schools and 19 out of 29 (66 per cent) are Oxbridge graduates.
As unemployment continues to rise and with it crime, but it won't be these toffs in their ivory towers that notice a decline in living standards. Those with posh independant, rich segregated schools and expensive private health care don't need to invest in our schools and the NHS. Shameful.