“Public spending accounted for 62.7% of the GDP of Northern Ireland. In Wales, the figure was 57.4%; in Scotland, 50.3%. The north-east of England scored 57.1%; the north-west 50.2%. If you want to understand the essential difference between the south-west and south-east, consider their respective numbers: 42.1%, as against the uncontested national low of 34.1%.”
Harris observes that the impact of the cuts will be compounded by the abolition of Regional Development Agencies in the English regions – leaving job creation to micro ‘local economic partnerships’ (and otherwise the market) will inevitably lead to a rapid rise in unemployment.
On the same theme, the Belfast Telegraph reports on growing fears that Con Dem cuts will cause greater devastation in Northern Ireland than any other part of the UK.
http://www.belfasttelegraph.co.uk/news/local-national/northern-ireland/friendless-ulster-facing-economic-disaster-14900307.html#ixzz0w5pbsuxM
£128m has been cut back from public expenditure in 2010/11 by the Stormont Executive with over £1bn to follow over the next four years.
Leading economist Professor David Blanchflower said: “I believe that this Government's misguided economic policies are going to be disastrous for the UK economy in general and will hit Northern Ireland especially hard. My fear is that we are observing the greatest macro-economic policy mistake in a hundred years.”
Read more background at:
http://unisonactive.blogspot.com/2010/07/con-dem-cuts-will-make-it-grim-up-north.html