Autumn Statement shows Southampton is Paying the Price for Tory Dogma
29th November 2011
George Osborne’s austerity experiment has choked off economic growth, and families in Southampton are paying the price, Southampton MPs said today.
Forecast growth has fallen from 2.3% to just 0.9%- a virtual flatline- the result of the depth and speed of deficit reduction followed by the Tory-Lib Dem Government. In a humiliating u-turn, the Government is also scheduled to borrow £158 billion more than they budgeted for.
Alan Whitehead, Labour MP for Southampton Test, said:
“Today is a disaster for Mr Osborne, but it’s families and children in Southampton who are paying the price. Having spent much of the last year cutting vital help for the economy, the Government has now belatedly decided to effectively reinstate programme after programme, from capital spending to youth unemployment measures. But there’s a real danger that these measures will be too little, too late.
“In addition to the worrying downgrading of the growth figures, there are some really concerning figures on the forecast of 100,000 more children forced into poverty over the next year. The Government promised they would not allow child poverty to rise as a result of their austerity measures and we’ll be pressing them very hard to make sure they keep their promise.”
John Denham, Labour MP for Southampton Itchen, said:
“People in Southampton have been betrayed by the failure of the Tory-led government's gamble. There are now 733 young people unemployed in my own constituency – that’s over a 30% increase from this time last year. And in all there’s 2,565 claiming Jobseekers Allowance.
“Prices are rising by 5%, making life harder for families, and too many children are being forced to live in poverty by this Government. And now George Osborne and this Tory-led Government which said it would cut borrowing is now increasing it.
“Southampton has felt the pain but it's not working”.
The MPs also slammed the Government for leaving the Port of Southampton out of the new National Infrastructure Plan. They said:
“The plan commits the Government to supporting the rival Thames Gateway but says nothing about Southampton’s plan to invest £150m in the new container terminal – a project which is currently held up in bureaucratic Whitehall delays.”
More information
Labour’s recommends its 5 point plan for jobs and growth to help boost the economy:
- A £2 billion tax on bank bonuses to fund 100,000 jobs for young people - which they would be required to take up - and build 25,000 more affordable homes. In the South East, this will create up to 5000 jobs for young people and build 4000 new affordable homes.
- Bringing forward long-term investment projects: schools, roads and transport - to get people back to work and strengthen our economy for the future.
- Reversing January's damaging VAT rise now for a temporary period - a £450 boost for a couple with children - immediate help for our high streets and for struggling families and pensioners. Over 12,800 families in Southampton will receive a £450 boost.
- A one year cut in VAT to 5% on home improvements, repairs and maintenance - to help homeowners and small businesses. The average household in the South East spends £1726.40 a year on home maintenance, repairs and improvements. This means that the average household in the South East stands to benefit by £215.80 a year from a cut in VAT to 5% on home maintenance, repairs and improvements.
- A one year national insurance tax break for every small firm which takes on extra workers - helping small businesses to grow and create jobs. In Southampton, 4,900 small firms will be eligible for a tax break to take on extra workers.
Unemployment figures:
|
JSA claimants by age (October 2011) |
|||||
|
24 and under |
% annual increase |
25 to 49 |
% annual increase |
50 and over |
% annual increase |
Southampton Itchen |
780 |
+31.1 |
1435 |
+11.2 |
350 |
+20.7 |
Southampton Test |
805 |
+29.8 |
1460 |
+11.5 |
405 |
+32.8 |
What do you think about this story? Email Alan