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North East councils hit by Osborne: statement from Labour MPs

“George Osborne announced a 56% cut in government grant to local authorities. He expects them to make this up by increases of up to 2 percent in council tax and business rate rises. However for North Eastern councils where incomes and property prices are lower this cannot possibly make up for the loss. For example, halving Durham’s rate support grant would be a cut of £50m and a 1 percent increase in council tax raises £1.6m, while a 10% rise in business rates raises £5m. Whereas some London local authorities can raise £330m on a 1 percent council tax rise and £100m in business rates.

“This would be a disaster for older, disabled and vulnerable people in Durham and we must ask the Chancellor to think again as he has on tax credits. It marks the final destruction of the post-war, cross-party consensus on the equalisation between affluent and less affluent communities.”

Dave Anderson, MP for Blaydon

Roberta Blackman-Woods, MP for City of Durham

Ronnie Campbell, MP for Blyth Valley

Jenny Chapman, MP for Darlington

Alex Cunningham, MP for Stockton North

Mary Glindon, MP for North Tyneside

Helen Goodman, MP for Bishop Auckland

Stephen Hepburn, MP for Jarrow

Emma Lewell-Buck, MP for South Shields

Ian Mearns, MP for Gateshead

Grahame Morris, MP for Easington

Chi Onwurah, MP for Newcastle upon Tyne Central

Iain Wright, MP for Hartlepool

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