CHANCELLOR George Osborne will deliver his Autumn Statement tomorrow at a pivotal moment for the British economy.
The Eurozone is in turmoil, business confidence is shot to pieces and bank lending has seized up.
The 2.5 per cent growth forecast predicted earlier this year by the Office for Budget Responsibility now looks hopelessly optimistic.
The pressure is on Mr Osborne to find a way of stimulating growth to prevent another recession. He is expected to unveil a boost to infrastructure spending and a £10bn credit easing plan to boost lending to small and medium-sized employers.
Spending on infrastructure is a temporary quick fix – it creates jobs and boosts businesses – but we hope the cash is shared equally. One of the largest capital spending projects of the last decade the £15.9bn crossrail scheme to build a major new rail link under central London had precious little impact in our region.
The Institute for Public Policy Research says today that the North-East faces a lost decade of stagnation and unemployment. The South-East will recover in three years. Something needs to be done if the North-South divide is not to become a chasm.
The Government could make a start by reinstating the A1 Leeming to Barton upgrade, in North Yorkshire, scrapped in last year’s Comprehensive Spending Review. Closing the final motorway link between the North-East and London will provide a double boost: jobs and infrastructure improvements.
How about it Mr Osborne?
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