Press Story

The report argues that the Coalition's £81 billion in spending cuts will hit northern communities hardest as people lose their jobs and join an already long queue of people seeking work.

Well North of Fair: The implications of the Spending Review for the North of England finds the ratio of job seekers to jobs advertised is already higher in the areas where job losses are expected to be greatest:

	PwC estimated job losses by 2014/15 (as % of current jobs)	Current ratio of job seekers to advertised vacancies
Wales	4.3	4.4
Scotland	4.1	5.8
North East	4.1	5.5
Yorkshire & Humberside	3.7	5.3
North West	3.7	4.3
West Midlands	3.6	5.0
South West	3.5	3.2
East	3.2	4.1
East Midlands	3.2	4.1
South East	3.1	3.8
London	3.1	7.2

The report estimates that by 2014/15 the three regions of the North will suffer job losses equivalent to 3.8 per cent of the total northern workforce, in comparison to 3.2 per cent in London and the Greater South East as a consequence of the Spending Review.

The report also argues that, with upgrades to the Tube and Crossrail taking up nearly half of the transport capital budget, capital investment is disproportionately favouring the Greater South East at a time when growing the private sector in the North is more vital than ever.

The report also shows that as well as job losses, benefit cuts will hurt more people in the North-East and Wales, where 20 per cent of the working-age population are claiming state support, compared with 15 per cent in London, 13 per cent in the South West and 12 per cent in the South East.

Ed Cox, Director of ippr north, said:

With so many people employed in the public sector or in businesses reliant on public funding plus a higher proportion of people already out of work, the North is undoubtedly in for a tough time over the next few years.
The North needs to take charge of its own destiny by developing a plan for growth. We must now focus on getting people into decent jobs in growing sectors, investing in innovation and infrastructure and growing the skills and enterprise to support people into new jobs and develop new business.
If the Coalition is serious about localism then they must radically devolve power and allow the northern regions to forge their own economic future, rather than sticking to the current system where too many people's futures are decided by a few men in Whitehall.

Note to editors:

Estimated lost jobs in public and private sector as a result of spending cuts, as a percentage of total jobs by nation and region:

	Number	%
Northern Ireland	36,000	5.2
Wales	52,000	4.3
Scotland	95,000	4.1
North East	43,000	4.1
North West	108,000	3.7
Yorkshire & Humberside	82,000	3.7
West Midlands	80,000	3.6
South West	81,000	3.5
East Midlands	58,000	3.2
East	74,000	3.2
South East	112,000	3.1
London	122,000	3.1

Source: PwC 2010

Contact:

Tamsin Crimmens, Media Officer, ippr north: 07800 742 262 / 0191 233 9051 / t.crimmens@ippr.org