Chancellor Signals Challenges for Tyneside, Lib Dem Group Leader Warns

Three weeks on from the General Election, it will surely be dawning on residents of Newcastle and the North East (and even some local Labour politicians) that the next few years will be more about "Difficult Decisions" than creating change. The Chancellor's announcements this week, claiming a £22bn black hole, appear to confirm the Institute for Fiscal Studies' dire warnings during the election campaign that neither Labour nor the Conservatives were being honest about the state of the public finances. Few will shed any tears for the ejection from power of a bankrupt and broken Conservative government, but anyone looking to Labour might find it difficult to look on the bright side. 

The Government have steadfastly refused to consider any changes to the two child benefit cap, despite a mountain of evidence, and a deafening chorus from their own MPs, that it would be the single most important step they could take to curtail child poverty in places like Newcastle. Whiter fuel payments are now set to be axed for millions of pensioners, which might be manageable for some, but far from all. And transport infrastructure spending is set to be cut to the bone, throwing flagship Regional projects like A1 dualling and the development of the Leamside Line into significant doubt. 

And if that all that was not enough, we are now seeing a Labour government committing to a new wave of austerity, with £3bn of in-year cuts to government spending on the way. They are offering tax rises and cuts and no commitments to addressing the crisis in social care, in the NHS, and in local government. They promised change, but it is already beginning to looking decidedly hollow. As the new reality dawns on the Region's political leadership, it seems increasingly clear that our councils, NHS and third sector will face continued, sustained financial challenges: the pinch is far from over.

The financial pressure on local authorities is only going to increase, and we must hope that Tyneside town halls do not end up at risk of default. 

All this means that there will likely be little progress on child poverty, on fuel poverty, on reducing waiting lists for a council house or council house repairs. Recycling rates will continue to plummet, our local rivers and coasts will still be sewage strewn, our pavements will still be cracked, our roads will still be potholed. Public transport woes, be it the reliability of the Metro or dwindling bus routes, will remain. The new Schools Minister, our MP for Newcastle North, will struggle to resolve the school places crisis in the City whilst driving through the addition of VAT to private school fees. 

With 72 MPs, the Liberal Democrats are back as a formidable force in Parliament. We will be pressing the case locally and nationally for a fair deal, urging Labour politicians to follow their conscience and commitments on progressive policies like ending child poverty and pensioner poverty, easing the housing crisis, cleaning up our environment, and delivering fairer social care. 

The new Labour Government is already at risk of losing its way. The Lib Dems will hold them to account, either in Westminster or here in Newcastle, as the official opposition in the Council chamber. We say that change for the better is not only possible, it is essential.