Thursday 9 September 2010

Labour's Legacy

The BBC's main headline today is that the coalition's spending cuts will 'hit the north harder'. I'm sure that comes as a big shock to all of us, especially if taken in conjunction with the Daily Mail's story from yesterday discussing figures that suggest 24 per cent of north eastern households have no inhabitants in work.

The overall UK figure is that there are 3.9 million households where no adult works. In these households there are 5.4 million adults and 1.9 million children. This has led to fears that there are children being brought up knowing nothing other than benefits.

Their reliance on the state will obviously mean that northern areas will suffer the initial brunt of cuts. The problem for the coalition is that while it is rightly seeking to review benefits and to force those wrongly on incapacity benefit back to work there are not enough jobs in these areas to accommodate the current unemployed, let alone the newly unemployed.

Predictably, the Labour party and the unions are condemning the cuts as unfair and ideologically driven. They say that the government is risking the recovery and hitting the poorest hardest. Each attack of this nature is frankly an admission that Labour failed to help the poorest in society, and that it failed to build an economy that would protect the most vulnerable people in the most at risk areas of the country.

It's not that I dislike Labour - indeed it has much to commend it - it's just that they had 13 years of government to make an impact on this. 13 years to make the north and other areas less reliant on the state for jobs and to make people less reliant on the state for welfare. They failed to do that. It was a mistake that was compounded by their economic policies, which were based on faulty underlying assumptions about the cyclical nature of growth and led them to borrow and spend too much money. For them to now sit in opposition and bleat about cuts is not credible. It's too easy in opposition just to be opportunistic, and their party is becoming ever more so as it seeks to redefine itself. I just hope they stop when they eventually elect a new leader.

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