Realist, not conformist analysis of the latest financial, business and political news

Northern Cities Lose Under Austerity – Because They Gained Under Brown

The Centre for Cities wants to tell us all that the Northern cities have been losing out under that Tory imposed austerity – the b’stards. This is indeed true and yet the one thing the report doesn’t go on to tell us is why. That being that those Labour controlled Northern cities made out like bandits under the Brown Terror. And this is rather the point of democracy, that we all get to change our minds. Or a slightly more cynical realistic view of it, those who get elected send the bungs to those who elected them.

[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””] Cities and urban areas across Britain have been “hit hardest” by cuts to local government funding, a report says. Centre for Cities said built-up areas lost an average of £386 per head over the past eight years. It said councils in the north of England were “less able to raise money locally” than those in the south. [/perfectpullquote]

The report is here.

[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””] In a spending review year, Cities Outlook 2019 explores how local government cuts since 2010 have impacted UK cities, finding that cities have shouldered almost three-quarters of all local government spending cuts. Not only that, but with an ever-increasing demand for services like social care, cities are dedicating more and more of their spending to these vital services, leaving little room to pursue activity in support of their wider economy. [/perfectpullquote]

So, to give the full picture. The Uniform Business Rate takes all that taxation – business rates – on commercial property and sends it off to central government. Who then parcel it out again to the varied local authorities. There is always at least some redistribution in this process. Under Gordon Brown the traditionally Tory voting leafy shires and rich southern cities sent more to those traditionally Labour supporting Northern cities. Under the Tories the reverse has been happening,. The redistribution still flows the same way, the richer supporting the poorer, but just not quite as much as Labour set the system up to do.

And that’s it really. Tory voters are now paying less to Labour voters. Something we’d rather expect when the government turns from Labour to Tory.

You know, and? Democracy, innit.

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