A year ago, the Conservatives and Lib Dems joined forces. In a series all week marking the Coalition’s first anniversary, The Northern Echo explores its impact on the region, starting with how the Government’s plans will affect Durham City.

WAITROSE left Durham City in August 2008 with the loss of more than 100 jobs.

Its 18,000sq ft store, in The Gates shopping centre, was empty for two-and-a-half years – an ever-present reminder of the recession crippling the city, region and nation.

Finally, Wilkinson came to save the day, opening in March.

When the chain held two recruitment days, more than 1,000 people queued to apply for only 31 permanent and 28 temporary posts.

The Coalition hopes private sector growth will compensate for public sector cuts.

But some estimates put public job losses announced in Durham in the past year at 20,000.

Clearly, Durham is going to need more than a new Wilkinson.

Andrew Sudgen, policy director at the North-East Chamber of Commerce, said asking the private sector to grow at the same rate as the public sector employment declined was “always really optimistic”.

However, he said the city had good transport links and that there has been investment in nearby industrial estates and commitments to developing the retail, leisure and tourism sectors.

He said: “It has been pretty well documented that Durham City, with its high proportion of public sector workers, is going to have tough times with the fiscal re- balancing, but we have seen real growth in the private sector.

"There are some fantastic businesses in the city.”

Roberta Blackman-Woods, Durham City’s Labour MP, takes a bleaker view.

She said Durham has suffered and will suffer through: public sector cuts that are too deep and too fast; allowing universities to charge up to £9,000-a-year tuition fees – Durham University has opted for the top rate; and the scrapping of plans for a Durham academy.

She said: “What the Government has done is absolutely terrible. My biggest concern is for young people.”

She added that Durham would have been extremely different under Labour, and that with cuts not so deep or quick, agencies would have had more time to reshape the public sector and been able to help retrain those losing their job.

She said: “The economy is only recovering very slightly – zero per cent growth over the last six months.

“I will do everything I can to encourage the private sector but it is going to take time to develop in this area. We do not want to go back to the Eighties.

“They are doing what I would expect a Conservative government to do – not really care much about the North- East, run down public services and plunge many more people into poverty.”

Councillor Simon Henig, the Labour leader of Durham County Council, agrees.

He said: “The public sector is bigger here to fill the gap left by the absence of the private sector.”

The council’s multi-billion pound County Durham Plan fits with the Government’s vision to use private-sector funding to lead regeneration.

It focuses hugely on Durham, wanting 5,000 extra homes built around the city by 2030, £100m spent on new western and northern bypasses and Aykley Heads to be transformed into a cuttingedge business centre.

Stuart Timmiss, the council’s head of planning, says he is certain the plan is deliverable.

Carol Woods, a Lib Dem county councillor and former parliamentary candidate for Durham City, said the region’s economy still needs rebalancing.

She said: “For far too long, we have been too dependent on the public sector.

“The Labour government had its chance to increase the private sector. It has left the North-East exposed.”

She said the Government had made “a very good start”, pointing to: 􀁥 Income tax changes that she said had given 26,000 County Durham people a £200 tax cut; 􀁥 Re-linking pensions to inflation, which she said mean £30m extra a year for County Durham pensioners; 􀁥 Political reforms such as the introduction of a fixedterm parliament; 􀁥 The £2.5bn pupil premium, which she said means an extra £6m a year for County Durham youngsters.

She said she accepted it was a difficult time for public sector workers; but said the Government had adopted a short, sharp shock technique, which was better than long-running pain under Labour.

She added: “If you have jacked up your credit card so high you are paying huge amounts of interest every month, the best thing to do is get it under control now.”

So, after a year of Tory-Lib Dem coalition, what is the verdict for Durham?

Mr Sugden said: “The short-term has been bumpy, but the promise is for some growth ahead.

Dr Blackman-Woods said: “It is my worst nightmare because of what they are inflicting on Durham.

Coun Henig said: “It is the wrong direction for the country.

Coun Woods said: “I think there have been a lot of positives for Durham and there is a lot of potential for the future.”