Coalition slash and burn takes gamble with Hull jobs

Diana Johnson MP has expressed dismay at the effect of today's Coalition Spending Review on jobs and services in Hull.

Cuts of £81 billion in Government spending, in addition to £6 billion set out in June, were announced by the Coalition Chancellor of the Exchequer George Osborne in the House of Commons today (Wednesday 20 October).

Economist forecasters Price Waterhouse Cooper estimate that a million extra people will be put out of work by Coalition cuts nationally, half of them in the private sector, 82,000 of them in Yorkshire and the Humber, and 8,000 of them in Hull. Around £176 million will be taken out of Hull's local economy.

Hull North's Labour MP said that her most immediate priority after the Chancellor announced a 60% cut to the social housing budget will be to press Coalition Ministers on the future of Hull North social housing regeneration schemes at Orchard Park and Bransholme North. Around £160 million of investment is at stake for Orchard Park and at least £25 million for Bransholme North.

Commenting on the Budget Statement as a whole, Diana Johnson MP said: "This slash and burn Coalition Spending Review takes a massive amount out of Hull's local economy, will put thousands more on the dole and spread poverty.

"Driving more people into welfare dependency, rather than being in work paying tax, is no plan for growth and not the efficient route to cutting the deficit burden.

"In Hull, new private sector jobs will struggle to compensate, in both quality and quantity, for public service jobs being lost and the knock-on effect in the private sector itself. The voluntary sector will not be able to paper over the damage to public services.

"For many Hull people - young and old - the damage of cutting too early and too deep will become clearer in the weeks ahead. Jobs, incomes and homes will be less secure. Cuts in police numbers and prison places will make our streets less safe.

"Having more police, teachers and nurses did not cause the deficit or the global recession, but the Coalition wants these frontline services and local people to pay the price for a deficit caused by banker greed two years ago.

"Back then the Tories still supported Labour's public spending plans and Lib Dems complained that Labour was not spending enough on school food, free swimming, flood protection and much else. Now Lib Dems back cuts in all these areas and hikes in VAT and student tuition fees."

Remarking on her most immediate concerns about the possible effect of housing cuts on Hull North, Diana Johnson added: "After hearing that the Coalition is slashing the Budget for building and repairing social housing, my first priority is to seek reassurance from Ministers about the future of housing schemes in Orchard Park and Bransholme North.

"These projects, which the previous Labour Government had funded, are vital to regenerating these neighbourhoods. Local people and councillors have spent much time and money improving these plans. It would be a betrayal of these residents if the schemes were abandoned - and another blow for local construction jobs."

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