Repeat of history

Learning austerity’s lessons

A DECADE after George Osborne’s ‘Austerity Budget’ paved the way for a series of painful public spending cutbacks in the wake of the bailout of the banking sector, another Chancellor is facing the challenge of attempting to balance the books after a gigantic financial shock.

But while Mr Osborne’s claim that “We are all in this together” soon rang famously hollow as spending cuts fell disproportionately on the North and poorer areas, Rishi Sunak must ensure that principle is genuinely adhered to in the wake of the coronavirus pandemic.

New research by the IPPR North think-tank has found that over the last decade, the North saw a £347 per person fall in spending on services by councils compared to a £279 fall across England.

There are already some concerning signs about where the economic impact of Covid-19 is starting to hit – an increasing number of councils are raising the alarm bell to warn that they could soon be forced into effective bankruptcy and focus only on providing statutory services unless they urgently receive more Government support.

IPPR North rightly points out that devolution deals are central to economic and social recovery – a view echoed by Sheffield City Region mayor Dan Jarvis who is today calling for a New Deal for the North to hasten the region’s recovery.

Mr Sunak knows very difficult decisions lie ahead in rebuilding the economy.

But it is vital the Johnson Government’s “levelling up” promise delivers in reality and does not become seen in the same light as Mr Osborne’s ‘Northern Powerhouse’ concept did; a memorable piece of rhetoric that changes little on the ground.