Cuts posing challenge to the region

Jun 1 2010 by Adrian Pearson, The Journal

THE Journal’s Case for the North East put together the challenges and opportunities a new Government would face as it seeks to cut spending.

High on this list was the need to preserve a regional voice, both in Whitehall and abroad. Amid mounting pressure the Conservatives agreed to allow a slimmed-down regional structure to remain rather than split the region up into competing districts.

Ministers, civil servants and regional leaders are in discussions to consider the exact powers of a regeneration body stretching from Berwick to Teesside, but there is firm agreement on the need for an agency to bring in multi-million pound developments to the region.

However, in other areas the contribution the North East to the UK economy is at risk as various proposed Bills look to make things harder for the region.

That risk is at its most obvious in the ongoing battle to improve transport connections to and from the North East.

Plans to scrap a proposed third runway for Heathrow and a new per plane tax could threaten flights running out of Newcastle Airport.

The coalition Government has failed to address this despite calls from several regional airports to free up businesses.

And on the economy the North East is still waiting to see if cuts will see thousands of public sector workers made redundant.

The knock-on effect is also expected to damage the private sector, including a growing risk that the vital construction sector could be hit as councils scale down regeneration plans.