Coronavirus: Downturn should not enhance north-south divide, Labour warns

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Coronavirus: Downturn should not enhance north-south divide, Labour warns

Picture caption Angela Rayner accused Con


Angela Rayner

Picture caption

Angela Rayner accused Conservatives of “turning their backs” on the North

Labour has warned that the financial downturn brought on by coronavirus should not “enhance the hole” in earnings and wealth between the north and south of England.

In a speech, deputy chief Angela Rayner urged the federal government to think about the “human value” of unemployment.

She additionally argued that the stamp-duty vacation would assist folks in London greater than these anyplace else.

Boris Johnson has promised to “degree up” the nation, serving to components feeling “left behind, uncared for, unloved”.

Final month, the prime minister set out a £5bn plan to construct houses and infrastructure as a part of measures to take care of the anticipated large recession following the nationwide lockdown.

The UK financial system shrank by 2.2% throughout the first three months of this yr, in accordance with official figures – the joint-largest quarterly fall since 1979.

And the Workplace for Nationwide Statistics’ information for April present a month-to-month fall of 20.4% – by far the largest on file.

In a pre-recorded speech for the Durham Miners’ Gala, the annual labour motion and commerce union celebration which takes place on-line on Saturday, Ms Rayner spoke of her fears that the federal government may use the downturn to justify a coverage of “managed decline” for northern England.

She stated: “The north-south divide is constant to develop and we can not afford for the financial impression of coronavirus to extend this hole much more.

“The Tories discuss a very good recreation on this concern however their file of turning their backs on the North speaks for itself.”

‘Purple wall’

In his summer time assertion this week, Chancellor Rishi Sunak introduced a short lived vacation on stamp responsibility on the primary £500,000 of all property gross sales in England to reinvigorate the property market.

Ms Rayner, citing analysis by the Decision Basis suppose tank, stated this is able to not assist the common homebuyer in north-east England, whereas the common purchaser in London would save £14,200.

She added that the big rises in unemployment seen in former industrial areas of the North throughout the 1980s shouldn’t be allowed to occur once more.

Labour is eager to regain many former protected seats throughout northern England and the Midlands – as soon as referred to as the “purple wall” – that it misplaced in December’s landslide basic election victory for Boris Johnson.

Final month, the prime minister stated his plans would guarantee “jobs, jobs, jobs” and that there could be no return to austerity throughout the coronavirus downturn.



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