Revealed: the cuts hit hardest where jobs are fewest

New data shows that the spending cuts are deepest in areas with the highest claimant count per vacancy.

In the latest edition of the magazine – on newsstands from tomorrow – I have interviewed shadow work and pensions secretary Liam Byrne.  It is a revealing conversation in which he insists that, contrary to received Westminster wisdom, welfare policy will be a vote winner for Labour by the time of the next election. (The Tories are working on the assumption that voters are so filled with scorn for the benefits system Labour bequeathed that they can keep on cutting with impunity and force the opposition into unelectable defence of "scroungers".) Not so, says Byrne. "Labour will win on social security."

The reason for this confidence is, broadly speaking, that coalition economic policy is failing, the welfare bill is rising and so the real cost of cuts is felt by people in work – so by definition not George Osborne’s target shirkers. As that fact becomes apparent, voters will come to be increasingly appalled by the social impact of Osborne’s axe raid on the safety net. "The Tories have crossed the threshold of decency," says Byrne. "They’re very good at conjuring up another vulnerable group to kick the crap out of  … As working people feel the kicking they’re going to get next year and as they see the way our country becomes divided, they’re going to recoil. It will remind them of the things they rejected about the Tories in 1997."

To make that point Byrne poaches the Downing Street campaign lexicon, talking repeatedly about the impact of cuts on "the strivers". This is the low-income segment of working households who once flocked to the Tories under Margaret Thatcher’s banner of middle class aspiration but who suspect Cameron and friends are not on their side.

"It’s not Britain’s shirkers who are having to pay the cost of failure, it’s Britain’s strivers," says Byrne. "The Tories are screwing Britain’s strivers."

There’s more in the magazine, including some interesting lines on how Labour would offer a new settlement without promising to spend more money.

To ram home the point about how ill-targeted and politically motivated the coalition’s austerity policies are, Byrne’s office was keen to pass on some research in which they have collaborated with Newcastle council to match the scale of local authority cuts to the relative accessibility of work in different areas. Despite the nakedly partisan source, the data are pretty interesting and so worth sharing.

Broadly speaking, the conclusion appears to be that the cuts hit hardest where jobs are fewest. The research uses a range of data from the Department for Communities and Local Government (DCLG) to draw up a league table of councils according to the value of cuts per head of population they have experienced. That was then tallied with data on the average benefit claimant count per vacancy.

What emerges is a very clear correlation between local authorities where the cuts are deepest and areas where the highest number of people are chasing the lowest number of jobs.

So, in areas where the cut per capita was £200 or more, the average number of jobseekers per vacancy was 9.3.

Where cuts per capita were £150-199, there were, on average, 6.5 claimants per vacancy.

In areas where cuts were £100-149 per head, there were 5.4 claimants per vacancy. For the £50-99 per had band, there were 4 jobseekers to every job and in the £1-49 group just 2.5 claimants per vacancy. (The national average is 3.7)


 

The top five affected councils are as follows:

Local Authority

Claimant count per vacancy Oct 2012

Cumulative change per person (scale of cuts, by Newcastle methodology)

Hackney

26.4

-£244

Knowsley

9.4

-£229

Liverpool

6.2

-£229

Newham

11.7

-£227

Tower Hamlets

10.7

-£203

Notably, they are all Labour-controlled.  There are only three Tory-controlled councils in the top 50 hardest hit areas and all ten of the least affected areas are Conservative.

Partly that just tells us that the cuts hit inner city areas, which happen also to be areas of high density unemployment. There is, no doubt, a Conservative spin on these figures which would claim that Labour councils were likely to be higher spenders and more wasteful and so are facing a more extreme belt-tightening relative to where they were in 2010.

Another way of looking at it is that the cuts are shafting people in the poorest areas and that the people out of work in those places are also the ones who face the bleakest labour market conditions. Also, that the coalition is funnelling the pain of austerity into safe Labour seats, which makes sense politically but is hardly in the spirit of keeping us all in it together.

We’ll try to get full tables up later.

A job centre is pictured in Bromley, south-east England. Photograph: Getty Images.

Rafael Behr is political columnist at the Guardian and former political editor of the New Statesman

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Our union backed Brexit, but that doesn't mean scrapping freedom of movement

We can only improve the lives of our members, like those planning stike action at McDonalds, through solidarity.

The campaign to defend and extend free movement – highlighted by the launch of the Labour Campaign for Free Movement this month – is being seen in some circles as a back door strategy to re-run the EU referendum. If that was truly the case, then I don't think Unions like mine (the BFAWU) would be involved, especially as we campaigned to leave the EU ourselves.

In stark contrast to the rhetoric used by many sections of the Leave campaign, our argument wasn’t driven by fear and paranoia about migrant workers. A good number of the BFAWU’s membership is made up of workers not just from the EU, but from all corners of the world. They make a positive contribution to the industry that we represent. These people make a far larger and important contribution to our society and our communities than the wealthy Brexiteers, who sought to do nothing other than de-humanise them, cheered along by a rabid, right-wing press. 

Those who are calling for end to freedom of movement fail to realise that it’s people, rather than land and borders that makes the world we live in. Division works only in the interest of those that want to hold power, control, influence and wealth. Unfortunately, despite a rich history in terms of where division leads us, a good chunk of the UK population still falls for it. We believe that those who live and work here or in other countries should have their skills recognised and enjoy the same rights as those born in that country, including the democratic right to vote. 

Workers born outside of the UK contribute more than £328 million to the UK economy every day. Our NHS depends on their labour in order to keep it running; the leisure and hospitality industries depend on them in order to function; the food industry (including farming to a degree) is often propped up by their work.

The real architects of our misery and hardship reside in Westminster. It is they who introduced legislation designed to allow bosses to act with impunity and pay poverty wages. The only way we can really improve our lives is not as some would have you believe, by blaming other poor workers from other countries, it is through standing together in solidarity. By organising and combining that we become stronger as our fabulous members are showing through their decision to ballot for strike action in McDonalds.

Our members in McDonalds are both born in the UK and outside the UK, and where the bosses have separated groups of workers by pitting certain nationalities against each other, the workers organised have stood together and fought to win change for all, even organising themed social events to welcome each other in the face of the bosses ‘attempts to create divisions in the workplace.

Our union has held the long term view that we should have a planned economy with an ability to own and control the means of production. Our members saw the EU as a gravy train, working in the interests of wealthy elites and industrial scale tax avoidance. They felt that leaving the EU would give the UK the best opportunity to renationalise our key industries and begin a programme of manufacturing on a scale that would allow us to be self-sufficient and independent while enjoying solid trading relationships with other countries. Obviously, a key component in terms of facilitating this is continued freedom of movement.

Many of our members come from communities that voted to leave the EU. They are a reflection of real life that the movers and shakers in both the Leave and Remain campaigns took for granted. We weren’t surprised by the outcome of the EU referendum; after decades of politicians heaping blame on the EU for everything from the shape of fruit to personal hardship, what else could we possibly expect? However, we cannot allow migrant labour to remain as a political football to give succour to the prejudices of the uninformed. Given the same rights and freedoms as UK citizens, foreign workers have the ability to ensure that the UK actually makes a success of Brexit, one that benefits the many, rather than the few.

Ian Hodon is President of the Bakers and Allied Food Workers Union and founding signatory of the Labour Campaign for Free Movement.