North West economy faces ₤243 million hit from key worker pay cuts this year - TUC analysis

NEW analysis published on Friday, 5 February 2021, by the TUC reveals the economic hit to the North West from Government plans to cut pay rises for key workers in the public sector. A total of ₤1.3 billion will be cut from key worker pay settlements in England this year, following announcements made by the Chancellor in November 2020. The analysis calculates the hit to the economy from the difference in economic activity expected if pay settlements go ahead in full, compared with if the Chancellor implements the cuts. To allow comparison between Regions and constituencies, the TUC calculated and ranked the effective loss of spending power per head compared to the previous year.

For the year April 2021 to March 2022:-

►  The hit for England is -₤1.7 billion

►  The hit for the North West is -₤243 million

►  The average hit per North West constituency is -₤3.2 million

►  The Regions suffering the worst proportionate hits to household spending power are:-

    1) North East,
    2) North West,
    3) Yorkshire and the Humber.

►  Of the top 30 worst hit Parliamentary seats in England, 7 are in the North West:- Manchester Central, Copeland, Liverpool Riverside, Salford and Eccles, Preston, Liverpool Walton, Blackpool North and Cleveleys.

Specific data for the hit in each North West constituency is linked to City Region figures:-

►  The hit for Greater Manchester is -₤91 million.

►  The average hit for Greater Manchester constituencies is -₤3.4 million.

►  The hit for Liverpool City Region is -₤58 million.

►  The average his for Liverpool City Region constituencies is -₤3.4 million.

Millions of key workers who kept the country going through the Pandemic will lose the pay rises they were expecting. The TUC is encouraging the Chancellor to reconsider, and to commit to policies that will improve pay and conditions for all key workers. These should include:-

►  Fair pay rises for key workers in the public sector; with a plan to restore wages to their levels before austerity.

►  Guarantee that all outsourced public sector workers get a pay rise so that they earn at least the real Living Wage.

►  Action to ensure that every key worker in every sector gets a pay rise, including raising the national minimum wage to at least ₤10 per hour.

►  Ban zero hour contracts; and use the long awaited employment bill to strengthen rights to fair working conditions for key workers.

The TUC argues that cutting key worker pay weakens wage growth for other workers too; especially those in jobs that directly depend on consumer spending. If public sector key workers are forced to tighten their belts, the reduced spending hits businesses too. And that impacts on other workers' pay. The TUC says that the Chancellor must not repeat the mistakes of the 2010s. Millions of public sector workers saw their pay capped by George Osborne. They lost thousands of pounds, and the knock on impact was wages falling across the economy and the worst slump in living standards in more than 200 years.  This is particularly important for parts of the country that the Government has promised to level up, as the analysis shows that restricting pay rises for key workers will increase existing inequalities. TUC Regional Secretary Lynn Collins said:- "Key workers have kept the North West going through the Pandemic. The Prime Minister clapped them, but his applause will ring hollow if he cuts their pay. It's no way to thank them. We're all part of the same pay circle. When a key worker spends their wages, it goes into other people's pay packets. Shop staff, factory workers, delivery drivers, childminders, bar staff; right across the economy, we are all connected. If our key workers get the pay rises they've earned, it will benefit everyone. The spending boost will help our local businesses and high streets recover quickly. And it will help level up our unequal economy."

Steve Rotheram Welcomes Liverpool City Region Town Centres Commission Report

STEVE Rotheram, Metro Mayor of the Liverpool City Region, has welcomed the report of the City Region's Town Centres Commission, which he established in January 2020. The Commission, the 1st of its kind in the country, was set up to investigate how to ensure a prosperous and sustainable long term future for the City Region's Town Centres. The Commission's report has made a raft of recommendations for policy makers within the City Region and beyond, as well as establishing a vision for the role of Town Centres, at the heart of their communities.

Welcoming the report, Steve Rotheram, Metro Mayor of the Liverpool City Region, said:- "Town Centres and high streets are at the heart of our communities, providing a hub for people to meet, shop and socialise but sadly too many have seen better days. In the aftermath of the last General Election, there was lots of attention lavished on Towns, but we've not seen enough action from Government to follow it up. When I launched this commission, I said that our economy, both Regionally and nationally, would not thrive unless success was shared between our Cities and our Towns. Locally we've been investing in both the present and future of Town Centres. We've put 10's of millions of pounds into Town Centres across the Region from New Ferry and Bootle, to Kirkby and Southport. I launched a multi million pound Town Centre fund to help empower Local Councils to build the capacity to develop ambitious plans to invest in the regeneration of their high streets. I'm really grateful to everyone who has worked on the Commission to put together this report. We'll be working to see how we can put its principles and recommendations into practice. Despite the challenges of this Pandemic, I want to safeguard the future of our Town Centres to ensure that they remain at the heart of our communities for generations to come."

Councillor Janette Williamson, Liverpool City Region Portfolio Holder for Inclusive Economy and 3rd Sector, said:- "This is an important and timely report as, across the country, we think about how to secure a prosperous future for our Town Centres. There is a lot in this report to think about, both as a Combined Authority and as individual Councils, as we look to future proof our Town Centres for the Post Pandemic world. The Pandemic has reminded us just how much we need to get together with friends and family and, working together with our partners, we can ensure that our Town Centres have a bright future as community hubs, where people can meet, socialise, access services, and shop."

The independent Commission was chaired by Sarah Longlands, Director of IPPR North. IPPR North was also appointed by the Combined Authority to act as a secretariat for the Commission. The Commission's vision for prosperous Town Centres would deliver places that:- anchor social, cultural, and economic value; with strategic investment to make them attractive, inviting and accessible for a diverse community. That means clean, safe streets and spaces, a range of shops and services that meet local needs, and opportunities to take part in events and activities that reflect the character and history of the area and its people. Belong to communities, providing a local focus in the City Region. Communities need a say in how decisions about their Town Centre are made, and a stake in the ownership of assets and land. This means local organisations working in partnership to bring communities together through different activities. It also means designing Town Centres in a way that is inclusive and accessible to everyone. And connect people and places within and beyond our City Region. Town Centres should be great places to live and to visit, with good quality housing that helps to build communities and sustainable transport networks that make it easy to get around; locally and across the City Region.

To achieve towns that anchor, belong and connect, the commission have set out recommendations including:-

►  Revenue investment that maximises the value of capital projects, to sustain them over time and let them develop and adapt to changing circumstances.

►  Encouragement and opportunities for creative and cultural businesses, social enterprise and diverse entrepreneurship, including small scale grants and loans.

►  Innovation in funding, ownership, design and the use of space such as encouraging pop-up spaces for community activity, local businesses or public service delivery; and ensuring vacant land is well managed and activated to contribute positively to Town Centres until its future use is decided.

►  Policymaking that puts people 1st in Town Centres, for example making health and wellbeing a key aim of policy, helping people to build skills for jobs in their local area, and giving local people more control over their Town Centre's future through co-operative planning.

►  The work of the Town Centres Commission complements the Liverpool City Region Combined Authority's ₤6 million Town Centres Fund, which is enabling local Authorities to come up with exciting ways to regenerate Town Centres across the City Region.

The focus on Town Centres as community hubs is also aligned with the Combined Authority's extensive engagement work to ensure that local communities are influencing its Spatial Development Strategy, which will shape how the City Region develops for decades to come, an approach which was also used to develop the City Region's Local Industrial Strategy. The Liverpool City Region's Land Commission; England's 1st; established by the Metro Mayor to review the use of public land for community wealth building, is also expected to publish its findings in the Spring.