Belfast Telegraph

Household incomes face 5% drop after spending cuts

By Alan Jones

Households in some parts of the country will lose more than 5% of their income if the Government presses ahead with billions of pounds worth of spending cuts to public services, according to a new report.

The TUC said areas which were heavily dependent on the public sector for jobs and services will be hardest hit by the effects of next month's comprehensive spending review.

In a study released ahead of a fringe meeting at the Liberal Democrat conference in Liverpool, the TUC said households across the UK each benefited from public services worth the equivalent of £21,000 a year.

Departmental spending cuts could leave some households £1,284 worse off on average, the research said.

Cuts already hitting some areas included the scrapping of school building improvements, cuts in business grants and reductions in help for the unemployed, said the TUC.

The North West had already faced the biggest share of the £1.17bn worth of cuts to local authority grants announced by the Government in June, losing £1 of every £6 cut across the UK, said the TUC.

General secretary Brendan Barber said: "There is real concern that the Government's programme of deep spending cuts will spark spiralling unemployment in the public and private sectors. As the cuts start to bite and people see the public services they rely on every day under threat, people will begin to ask whether there is an alternative to slash and burn economics."