Impact of spending cuts ‘unevenly distributed’

A new report has called on the government to take steps to assist cities hardest hit by public spending cuts and help stimulate private sector job creation where it is most desperately needed.

Research from Centre for Cities highlighted areas such as Leeds, Bristol, Milton Keynes, Reading and Aberdeen as being most able to withstand the impact of reductions in state expenditure over the coming years.

“Buoyant cities … which have been fast-growing and have lots of private sector jobs are best placed to lead the UK’s recovery,” said chief executive Alexandra Jones. “The UK cities most dependent on the public sector … will find it more difficult to rebalance.”

She urged the Conservative-Liberal Democrat coalition to draw up comprehensive action plans to boost the economic rebound of struggling provincial towns and cities, warning that extra funding may also be required.

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Earlier this month, Manchester City Council confirmed it was planning to make 2,000 staff redundant, in what the Unite trade union dubbed “savage” cuts.

Posted by Ross George