FINANCE

We don't boost the private sector by decimating the public sector

Government hopes of creating a Northern Powerhouse economy will stall because of an illogical failure to grasp how local authority spending cutbacks stifle investment, argues Joe Anderson.

Imagine if the Ministry of Defence was forced to scrap one of its three major services. Would ministers choose to do without the RAF, the navy or the army? This is the type of impossible choice councils have faced as they have lost, on average, a third of their budgets since 2010.

Austerity has bitten hard and although local authorities have stepped up to the mark – innovating wherever possible to avoid losing valued services – the impact has been obvious enough. The pain has been felt by all non-ring-fenced areas of spending: libraries, home helps, roads, parks, playgrounds, culture and waste collections. Even our support for businesses and efforts at regeneration.

Mayor Joe Anderson

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