Tuesday, 23 April 2013

Combination of cuts hits most deprived areas hardest

Combination of cuts hits most deprived areas hardest

New analysis by the Labour Party shows that the most deprived areas of the country are getting a double hit from local government cuts and cuts to tax credits and benefits.

The North East of England is the worst hit area, with cuts amounting to £566 per head. Least affected is the South East, where the combined impact of local government and welfare cuts is just over half as great, at £292 per head.

The worst-hit area, Knowsley in Merseyside, sees a total loss of £850 per head – £515 per head in welfare cuts and £336 in local government cuts. The least-hit area, Mole Valley in Surrey, sees a total loss of £182 per head – £164 in welfare cuts and £18 in local government cuts.

Two thirds of those affected by cuts to tax credits and benefits are in work.

By region, the loss per head is as follows

North East                  £566
London                      £511
North West                         £508
Yorks and Humber       £421
West Midlands            £388
East Midlands             £364
South West                 £334
East                            £324
South East                   £292

Liam Byrne MP, Labour’s Shadow Work and Pensions Secretary, said:

“The Tories are zeroing in on areas in need and hitting them hard – twice.

“Communities facing the biggest hit to local government are also losing most from cuts to their tax credits and benefits, yet instead of helping working families the Tories are giving millionaires a tax cut. That tells you everything you need to know about this Government’s priorities.”


Editor’s Notes:

1.   The analysis by the Labour Party combines two separate datasets - not originally compiled by the Labour Party - to show the impact of local government cuts and welfare cuts in 2014/15. A spreadsheet is attached.

2.   The welfare cuts information was compiled by the Sheffield Hallam University Centre for Regional Economic and Social Research, and published as "Hitting the poorest places hardest: The local and regional impact of welfare reform", April 2013, http://www.shu.ac.uk/research/cresr/sites/shu.ac.uk/files/hitting-poorest-places-hardest_0.pdf

3.   The original data was calculated to show the cut per working age adult by local authority. Labour has divided the total cut in each local authority by the total number of residents to give a per head figure instead.

4.   The local authority spending cuts dataset was compiled by Newcastle City Council, and gives cumulative per head of population change in Revenue Spending Power in 2014-15 compared to 2010/11. Their dataset is available here: https://docs.google.com/spreadsheet/ccc?key=0AonYZs4MzlZbdHlyTlZGMFhyNXFsU2JlQjZkVkNGUHc#gid=9

5.   The City of London has been excluded from the figures.

Sent by email from the Labour Party, promoted by Iain McNicol on behalf of The Labour Party, both at One Brewer's Green, London SW1H 0RH. Website: www.labour.org.uk to join or renew call 0845 0922299

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