OECD Report and North East Economic Outlook Forecast ‘Bad News for the Economy and for Teesside

Middlesbrough South and East Cleveland Labour MP, Tom Blenkinsop, today warned that two reports issued yesterday ‘spelt continuing misery for the North East and Teesside’ as the economic downturn intensified.

Tom said “The highly influential Organisation for Economic Co-operation and Development has now warned that the UK and the eurozone could be entering a renewed recession, and has cut its global growth forecast. In the UK, the OECD predicted the economy would shrink in the fourth quarter by just 0.02% and by 0.14% in the first quarter of next year. This puts the massive spin operation mounted by Chancellor George Osborne, in advance of today’s Autumn statement into a proper perspective – spin, not substance.”

“The second report – from the Newcastle based think tank, the Institute for Public Policy Research (IPPR) North – says that the North East faces a dismal decade of unemployment as the North-South divide continues to grow. They have done their regional number crunching and have come to the conclusion that it may well be 2020 before employment figures in the region return to 1990 levels and many more years before they reach the levels recorded in 2008, when the number of people in employment peaked across the UK. In contrast, they say, the outlook for London and the South East is a rosy one, with employment levels in the City and the leafy suburbs expected to recover in a mere three years.”

“It is clearer by the day that George Osborne’s Plan A is failing the nation, and especially those parts fo the nation like Teesside that rely on manufacturing industry and industrial employment. A plan that keeps the City of London happy, whilst the rest of the nation outside the M25 are left in misery, is the last thing we need in today’s world. It is clear that fairness and targeted growth and investment are words that are not in Mr Cameron and Mr Osborne’s vocabulary.”

Comments are closed.