Alex Reacts to the Comprehensive Spending Review

The Government today failed the major test to ensure they protected and created jobs as they tackled the deficit – and have instead condemned hundreds of thousands of people to the dole queue whilst devastating local services.

And they have tried to justify their action by blaming the last Labour Government for the financial crisis which was caused by greedy bankers and speculators across the world. The fact is that the UK entered the global recession with low inflation, low interest rates, low unemployment and the lowest net debt of any large G7 country.

“I am really worried for our communities across Teesside who will have to meet the cost of the world crisis – as deep cuts cost them their jobs and the income of hard working families is hit with cuts to child benefit and a rise in VAT.

“It has been all too easy for the Tories and Lib Dems to blame Labour – but without the last Government bailing out the banks, helping people with their mortgages to keep their homes and, like countries across the world, pouring billions into the economy, the recession would have become a depression and many more people would have lost their jobs.”    

The Coalition has announced the biggest public sector spending cuts in recent history with the loss of an estimated 470,000 public sector jobs.

But local people are not fooled by David Cameron’s argument that ‘we are all in this together’, said Alex.

“The Chancellor and his Tory and Liberal Democrat colleagues, many of them millionaires, have no comprehension of what it is like to be out of work and existing on the dole.  Nor do the fat cat businessmen with their multi-million pound salaries and bonuses who seem to think the Government have got the cuts right.”

Alex agrees that cuts are necessary – but there is no need to adopt a slash and burn approach to public services and major contracts which keep both public and private sector people in jobs. 

“In the Stockton Borough there are more than nine people unemployed for every job available – so it isn’t the time to axe even more.  Nationally, Price Waterhouse Coopers have said the private sector will also lose 500,000 jobs under the Government plans – and they are the ones expected to create new jobs,” said Alex.

“Labour’s alternative is to halve the deficit in four years which would allow us to protect public services and jobs. At this moment in time we need to secure growth not impose savage cuts. The Coalition is taking a huge gamble with our economy. These cuts are not about economic necessity but about politically driven choices.”