TUC budget reaction

VAT rises and cuts in public spending in the Chancellor’s budget will bring fear and anxiety to the North West, says the region’s TUC.

Rises in VAT to 20 per cent, a child benefit freeze and, when inflation is taken into account, pay cuts, will bring real suffering to the worst off in the region.

And the cuts of £30billion every year in public services will hit jobs in the North West even more disproportionately, said North West TUC Regional Secretary Alan Manning.

“This is a divisive, unfair budget which shows that we are not all in this together, “said Mr Manning. “The North West is paying the price now for the bankers’ recession. The cuts in public services will hit the poorest and most vulnerable, putting thousands of people on to the dole and threatening our recovery.”

As a percentage of their income, people earning less than £14,200 per year will lose more than everybody, bar the richest fifth above £38,400. And the Treasury's independent Office of Budget Responsibility are now predicting 170,000 more jobless claimants.

Mr Manning said the Budget was ‘a missed opportunity’ to secure the fragile recovery and build sustainable growth for the region’s economy.

He added:” The North West region relies on decent public services more than most – this Budget has brought real fear and anxiety rather than hope to families here.”