Alarming predictions of social unrest and the break-up of civil society have been delivered by the leaders of three of England's biggest cities, amid new evidence that government policies are widening – rather than narrowing – the economic divide between north and south.
Their joint assault comes as fresh analysis shows that one of the government's flagship policies to promote housebuilding and economic activity across the whole country, the New Homes Bonus, is draining money away from northern councils, while swelling coffers in their southern equivalents.
Calling for a change in the way funding is allocated, to make it fairer to the north, they say that while everyone agrees on the need for savings, the coalition austerity programme has gone too far and will soon backfire with chaos on the streets and further economic stagnation. "Rising crime, increasing community tension and more problems on our streets will contribute to the break-up of civil society if we do not turn back," they write.
"The one nation Tory brand of conservatism recognised the duty of government to help the country's most deprived in the belief that economic and social responsibility benefited us all.
"The unfairness of the government's cuts is in danger of creating a deeply divided nation. We urge them to stop what they are doing now and listen to our warnings before the forces of social unrest start to smoulder."
The council leaders argue that under the coalition, northern cities have been hit far harder than those in the south, partly because of the withdrawal of government support to deprived areas that was received under Labour. The situation is made still worse, because during economic hard times the demands for services in poorer areas are greater.
Having already budgeted for cuts of hundreds of millions of pounds since 2011, the council leaders – all from Labour-run cities – say the latest cuts have blown further holes in their finances, meaning that by 2018 they fear being unable to provide acceptable levels of essential services including social care for the elderly, refuse collection, and others such as libraries and sports facilities. On top of that they say their attempts to generate local economic activity are running into the sand because of lack of funds.
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In a letter to the Observer, the council leaders of Newcastle, Liverpool and Sheffield – where Nick Clegg is an MP – issue a plea to government to halt cuts that they say unfairly penalise the north relative to the south, before crime and community tensions erupt on the streets.
Reacting to the latest cuts announced to council budgets this month – under which a further 2% of spending reductions were unveiled by the chancellor, George Osborne, in addition to the 28% already in train – the council chiefs say ministers in Whitehall appear to be adopting a "Dickensian" view of the world, which is a betrayal of traditional one nation conservatism.
"The one nation Tory brand of conservatism recognised the duty of government to help the country's most deprived in the belief that economic and social responsibility benefited us all.
"The unfairness of the government's cuts is in danger of creating a deeply divided nation. We urge them to stop what they are doing now and listen to our warnings before the forces of social unrest start to smoulder."
The council leaders argue that under the coalition, northern cities have been hit far harder than those in the south, partly because of the withdrawal of government support to deprived areas that was received under Labour. The situation is made still worse, because during economic hard times the demands for services in poorer areas are greater.
Having already budgeted for cuts of hundreds of millions of pounds since 2011, the council leaders – all from Labour-run cities – say the latest cuts have blown further holes in their finances, meaning that by 2018 they fear being unable to provide acceptable levels of essential services including social care for the elderly, refuse collection, and others such as libraries and sports facilities. On top of that they say their attempts to generate local economic activity are running into the sand because of lack of funds.
Read more...
