George Osborne ready to sharpen his axe

Oct 17 2010 by William Green, Sunday Sun

As ministers make the final touches to their bid to slash the country's spending, Political Editor William Green looks at the impact on the North and hears a more positive message from a senior Cabinet minister.

MAKE no mistake, the next few days will be critical for the North. Around one in three workers are employed by the State and will be facing an anxious time.

Unions have claimed that scores of police, teachers and council workers will be thrown out of work as a result of the coalition’s comprehensive spending review being unveiled on Wednesday.

Even Sir Hugh Orde, head of the Association of Chief Police Officers, has pointed out that 83% of police budget goes on staff.

So, the backdrop is grim as Chancellor George Osborne prepares to wield the axe to cut the national deficit. Some Whitehall departments will see their budgets slashed by between 25 and 40%.

Dave Anderson, Labour MP for Blaydon, said: “I think it is clear that as soon as the Tories launched their manifesto in April we would go back to the 1980s, pulling money out too fast and ignoring the importance of public services.

“And we will end up with the same unintended consequences as happened with the pit villages. “The majority of people voted for us and the Lib Dems, who would have addressed the deficit much slower.”

But the Liberal Democrat Tory coalition is keen to show they have a plan for growth and not just cuts.

Energy Secretary Chris Huhne dismissed fears of a “double-dip” recession sparked by the cuts and warned against people talking down the region.

He said: “Double dip recessions are incredibly rare in economic history and I don’t think that is likely anywhere in the UK. And don’t underestimate or undersell the North East’s real strengths in the private sector”

The senior Lib Dem added: “In some ways the North East actually has a particular opportunity because, as Vince Cable pointed out on his recent visit, the region exports more than any other.”

Mr Huhne also said developments on the green energy front would have a positive impact on the region, but added: “All of that would be thrown into doubt and put at risk if we do not to get the budget deficit down.”

Speaking at the recent Tory conference in Birmingham, peer Michael Bates said getting the country’s finances back in black was essential to create a pro-business environment.

He said cuts “paled into insignificance” given the recession under Labour had wiped £10bn from the regional economy.