Tagged: economic growth

QuestionDine 2015: Election Candidates with chips

> From our postbag…

I thought you might like the filmed programme- ‘QuestionDine 2015: Election Candidates with chips’.

In the short video, prospective parliamentary candidates sit down for supper with young volunteers to discuss the big political ideas.

From immigration, economic growth and the EU to free speech, humanitarian intervention and building homes ourselves; they put cracking questions to candidates. But, do they get answers they are looking for? You decide.

You can watch the short video here:

http://www.worldbytes.org/questiondine-2015-election-candidates-with-chips/

> Same vid as at top of post, but with extra written information…

We would be delighted to get your feedback/comments on the video and would very grateful if you would embed the video and share this programme with your friends and networks who may be interested.
Thank you.

http://www.worldbytes.org/

Sunderland has fewer businesses per head of population than any other city in the UK

CIVIC bosses remain confident Sunderland has a bright economic future, despite a new report which says it has fewer businesses per head of population than any other city in the UK.

The Centre for Cities’ 2015 Cities Outlook report ranks Sunderland as the lowest out of 64 for ‘business stock’, with 186 businesses per 10,000 people.

The city is also second bottom for new business start-ups and patents registered.

It is not all bad news, however, with the city ranked fourth best in the country for manufacturing jobs and 22 out of 60 for the number of people with 5A*-C GCSEs including Maths & English.

Sunderland City Council leader Coun Paul Watson said:

“This Centre for Cities report offers a useful comparison which confirms that we are making good progress on a number of fronts, but that we face some of the same challenges that we have been aware of for a long time.

“What lies behind the figures is perhaps most interesting for Sunderland residents.

“Manufacturing, in particular, has undergone a period of rapid growth within the city – with Nissan having increased output by 50 per cent in the last two years.

“And we’ve seen a spate of private investment in the city centre complemented by our own investment in new public space such as the Keel Square, which is nearing completion.

“With these behind us, Sunderland is on course for further growth in jobs and prosperity in the years to come.”

> Growth of 16 hour/week and zero contract jobs, if the vacancies are anything to go by. Whether that’s something to celebrate is a matter of opinion.

Today’s report highlights the growing gulf between the south of England and the rest of Britain.

It shows that for every 12 net new jobs created between 2004 and 2013 in cities in the south, only one was created in cities throughout the rest of Great Britain.

And with an election just months away, it calls on all parties to ensure their visions for growing cities are based on significant devolution of both fiscal and structural power, providing incentives to support economic growth, and giving greater flexibility to ensure money can be spent where it is most needed.

Cities Outlook is the annual health-check of the economic performance of the United Kingdom’s 64 largest cities.

This year’s report maps the fortunes of cities over a decade of economic boom and bust, during which three major parties have held power.

It shows national growth between 2004 and 2013 was largely driven by only a handful of cities – mainly located in the South – which have seen their populations boom, their number of businesses grow, and thousands of new jobs created while migration of young and skilled workers, a lack of business growth, and falling employment opportunities have other cities’ economies to contract.

The report says successive Governments’ efforts have failed to rebalance the national economy and warns even the best-performing cities in the south are now facing problems, especially from rocketing house prices.

Five months out from the election, this report makes the strongest economic case yet for the next Government to step up to the challenge of investing in the long-term success of our cities, and build a brighter future in which more people and places can contribute to, and share in, prosperity and growth,” said Centre for Cities acting chief executive Andrew Carter.

“The stark picture the report paints of the enormous gap in the fortunes of UK cities over 10 years underlines why a ‘steady as she goes’ approach must be scrapped.

“We must move from thinking that bundling up new funding streams with bureaucratic delays, or simply tinkering around the edges with well-intentioned announcements, will be enough to reverse trends that are becoming increasingly entrenched.

“Cities need long-term funding and strategic planning, and policies that go to the heart of addressing the key drivers of economic growth – including transport, planning, skills and housing.

“This report throws down the gauntlet for all parties to turn their recent interest and pledges around cities and devolution into a clear plan to grow jobs and businesses, and improve quality of life throughout the United Kingdom.”

Source –  Sunderland Echo,  19 Jan 2015

Pace of economic growth set to slow in the North East, suggests report

The pace of economic growth across the North East is set to slow over the next 12 months, according to research from PwC.

Growth of 2.5% across the region this year has largely been driven by consumer spending rather than exports, investment or public spending, and the report’s authors warn that consumer spending cannot continue as it has been.

Consumers have dipped into savings over the past two years causing the household savings ratio to fall steadily.

PwC’s report forecasts that North East growth will slip back to 1.9% as consumer spending across the UK falls.

Bill MacLeod, PwC’s senior partner in Newcastle said:

“Consumer spending growth has been relatively strong for the past two years despite weak average earnings growth. This has been due to strong employment growth, increased income tax personal allowances and low mortgage interest rates, all of which have stimulated consumer spending.

“We expect the proportion of household spending on essentials like housing costs and utilities to rise steadily and account for more than a quarter of total consumer spending by 2020.

“In addition, as lending increases and interest rates go up the proportion of financial services spending, excluding mortgage interest is also expected to increase to around 13% of total household budgets by 2020.

“We estimate that, across the UK, real household disposable incomes will have grown by around 1.4% in 2014 – but that’s around 2% less than average household expenditure and there is little indication of that gap closing.

“These increased household spending pressures will further put further pressure on families, particularly if real wages don’t begin to catch up with inflation.”

PwC’s report suggests the service sector will remain the main engine of growth in the region, and the UK as a whole, as manufacturing is hampered by stagnation in the Eurozone.

Source –  Newcastle Journal, 14 Nov 2014

Austerity IS NOT working!

The lovely wibbly wobbly old lady

austerity has failed to create jobs or economic growth. As  predicted, the government has attacked jobs, pensions and pay, threatened privatisation and attacked and demonised those entitled to welfare. Yet all of this has worsened rather than improved the economy and people’s lives. 

Unemployment is rising, living standards are falling, and in early 2012 official estimates confirmed what our communities have experienced: that the economy is back in recession. 

You might wonder why, in the face of such overwhelming evidence of failure, government ministers have not changed course. It is because they want the public sector reduced and privatised, and wages driven down. This is exactly what David Cameron promised, when he said his government would “tear down” what he described as “big government bureaucracy”. 

The government has pledged to cut 730,000 public sector jobs by 2017 and to cut spending by £80bn. For millions, their jobs, pay and pensions…

View original post 2,390 more words

Budget 2014: A Budget For The Few, Not The Many

By Jenny Howarth

Chancellor George Osborne has delivered his fourth budget. It was clear from his opening gambit – “If you’re a maker, a doer or a saver: this Budget is for you” – that this budget would help the few and not the many. If you were not a ‘hard-worker’, business owner or saver then there would be no point in listening any further.

For Osborne, the budget was an opportunity to say that their long-term economic plan is delivering security for the people of this country. The emphasis was on support for businesses who invest and export, on support for manufacturers, on support for savers or rather making sure “hardworking people keep more of what they earn – and more of what they save” – all aimed towards the central mission: economic security for the people of Britain.

By the end of his 55 minute speech it was very clear that the economic security he spoke of was for the few not the many. He tried to convince people that his budget was for the “makers, doers and savers”, yet it came across as “I’m hoping to gain the over-50 vote”. He promised a budget of “hard truths” which could be implied as “if you think I’m going to help the unemployed, disabled and vulnerable then think again”.

Osborne’s budget was more ‘out of touch with reality’ than ‘hard truths’. He spoke of economic growth, a Britain on the road to recovery, even mentioning the new resilient pound coin to match the resilient economy. However, for thousands of families waking up the morning after the Budget, life is still a struggle. For them the budget was meaningless, doing nothing to improve their desperate situation and here is why.

Julia Unwin, Chief Executive of the Joseph Rowntree Foundation said:

“This is a Budget for the people who already have, not for the people who need to benefit most from the return to growth. It is a lost opportunity for the 13 million people in poverty who need active intervention to tackle the structural barriers that keep them in poverty”. Adding, “People on low incomes are unlikely to see the welcome benefits of growth unless there is targeted help with household and housing costs, with child care and with the nature of jobs and training. The expense and inefficiency of high levels of poverty continue to put a drag on growth”.

A view shared by other charities. William Higham, Save the Children’s director of UK poverty, said:

“The Budget was a missed opportunity to address the needs of families that are struggling to pay their food bill and children whose parents cannot afford to pay for uniforms and school trips”.

It is for these reasons, George Osborne’s fourth budget was a budget for the few. It failed to address the fact that living standards are falling – despite the 2010 Manifesto promising “An economy where…[people’s] standard of living…rises steadily and sustainably”. It failed to help the 350 000 reliant on food banks or the 400 000 disabled people paying bedroom tax. His “resilient pound for a resilient economy” ignores the fact that working people are £1600 worse off.

Osborne may believe that increasing personal tax to £10 500 will help improve living standards but whilst it lifts three million out of taxation, it does nothing for the many families who depend on housing benefit to top up the little wage they get. “The vast majority of this will be deducted from their benefits – giving with one hand while taking with the other”, says Matthew Reed, Chief Executive of The Children’s Society.

Matthew Reed’s comment raises another important point – benefits. Osborne had nothing to say on this except to announce a cap on the welfare budget. This will see Tax credits and housing benefit limited to £119.5bn in a bid to cut the deficit. Critics say that this limit to benefit claims over the next four years will hit disabled people and the low paid without tackling the underlying causes of Britain’s growing social security bill.

Whilst it may appear to be political suicide by Shadow Chancellor Ed Balls saying Labour will vote for the cap, it is not. According to Jonathan Portes, director of the National Institute for Economic and Social Research (NIESR), the cap was simply a “gesture” and served no purpose other than to kick the “problem of spending cuts into the next parliament”.

For Portes it was “meaningless” to put a number on the cap without having policies in place to deliver it or to state how the cuts would be achieved. Adding that the charter would commit MPs to renewing the cap each year. “As Parliament already votes on measures to change social security budgets, this charter will not make much difference”.

It would appear that Osborne’s welfare cap charter is not new but something that already exists. It could be argued that whilst Labour is voting for it, there is plenty scope to amend the limit and bring in policies that would help not hit. Moreover, the question that needs to be asked is would a successive conservative government do that or would they continue with their long-term economic plan that they insist is bringing security to the people of Britain.

For now it would appear they are committed to helping the few, committed to bringing security to the hard-workers, business owners and savers. Alison Garnham, Chief Executive of Child Poverty Action Group, says:

“Today’s Budget tries to lock-in austerity for millions of low-paid families, poor children, carer’s and disabled people. Announcing a cap for social security spending without a plan to address the root causes of low pay, high rents and high childcare costs, simply forces the most vulnerable in society to pay the price for inaction”.

Source – Welfare News Service,  20 March 2014

http://welfarenewsservice.com/budget-2014-budget-many/

Government threatens support for deprived students

Universities and colleges in the North East could be stripped of millions of pounds in funding used to give students from poorer backgrounds a fairer chance of getting a degree.

The cash is at risk because the Department for Business, Innovation and Skills, which is responsible for higher education, needs to make savings of £1.4bn.

Teesside University currently receives £5.9m each year, the University of Northumbria at Newcastle receives £3.5m, University of Sunderland receives £3.3m, University of Newcastle upon Tyne receives £1.1m, University of Durham receives £660,000, Newcastle College receives £959,00 and New College Durham receives £637,000.

The money, known as Student Opportunity funding, is allocated to universities and higher education colleges which succeed in attracting students from neighbourhoods where few people have traditionally taken part in higher education.

It also goes to institutions which succeed in retaining students who would statistically be more likely to drop out, and to those that recruit students with disabilities.

Leaked documents have revealed that the Department for Business is looking for ways to save £570m this year and a further £860m after the election.

Danny Alexander, the Chief Secretary to the Treasury, is reported to be pushing for Student Opportunity funding to be abolished, while Business Secretary Vince Cable and Higher Education Minister David Willets are lobbying to keep it.

Asked to comment on the reports, the Department for Business, Innovation and Skills said in a statement: “The Department is going through the process of allocating budgets for 2014-15 and 2015-16 and will set out plans in the usual way.”

Prof Peter Fidler, Vice-Chancellor of the University of Sunderland, was one of nine university leaders across the country to write a public letter warning: “The removal of this fund will damage economic growth and have a wider impact on sectors beyond higher education.”

The letter said that axing the fund “suggests that the Government is willing to abandon the cause of social mobility in higher education.”

The future of the fund was raised in the House of Commons by Labour’s Shadow Higher Education Minister Liam Byrne as MPs discussed funding for engineering students. He said: “On top of the huge cuts for educating 18-year-olds in college, we now hear rumours that the student opportunity fund that helps poorer future engineers will be completely axed.

“Will the Secretary of State take this opportunity to promise the House that he will not sacrifice social mobility to pay for the chaos in his Department’s budget?”

In reply, Business Secretary Vince Cable highlighted £400m in funding for science, technology, engineering and maths courses – but did not comment on the future of the Student Opportunity Fund.

The National Union of Students has launched a campaign to preserve the funding.

Toni Pearce, NUS president, said: “Cutting the Student Opportunity Fund is an absolute disgrace and, in the wake of cuts to the National Scholarship Programme, looks like the Government is backtracking on its commitment to support social mobility in favour of balancing the books on the backs of the poor.”

Mr Byrne said: “The Department for Business budget is a complete mess because high paying students at private colleges got access to the state student loan system. Now it looks like help for poorer students will be axed to pay for it.”

Source – Newcastle Journal, 25 Jan 2014