Region prepares for impact of government cuts

By PRSD, on Monday, May 24, 2010

With 730,00 jobs in the South West relying on public money, cuts in government spending could have a dramatic effect to the economic landscape of the region.

Commenting on Government plans to announce £6 billion worth of early spending cuts today, Nigel Costley, regional secretary of the South West TUC, said: “The South West’s economy is still extremely fragile and global uncertainty makes early recovery even harder. Taking any money out of the economy at the moment is dangerous as there is a real risk of a double dip recession, which will only damage the state of the public finances further.

“Politicians always claim spending cuts will fall on backroom administration, but the frontline cannot function without proper support. Making doctors, nurses and teachers do the necessary paperwork once done by support staff is bound to hit services.

“It’s all very well saying there will be a freeze on recruitment, but the remaining staff will have to cover for their former colleagues and as well as their workload and stress levels increasing, the service they can provide to the public is bound to suffer.

“Then there’s the human cost of the cuts: 730,000 jobs in the South West rely on public money, so any cuts will have a huge impact on these individuals and their families.

“Finally, there’s talk today of funding being withdrawn from the South West Regional Development Agency. This is a body created to sustain economic growth, with every £1 spent achieving a return of at least £4.50 for the region’s economy.

“If you multiply every pound cut by the government by four a half you get to see the real damage this will have in the region.”

(image: the South West Regional Development Agency – to be hit by government cuts)