Austerity measures to cut Lewisham incomes by £600 per head

The FT has published an interactive map, which shows how welfare cuts will hit local spending power in local areas across the country:

But as the government considers further deep welfare cuts in the June spending round, the FT's research underlines the potential risks to economic regeneration and private sector business prospects in poorer areas where the local population faces the loss of a large slice of purchasing power. 

The findings of the FT's investigation – the first to examine the local economic and business consequences of the reforms – suggest any impact will be most acute in areas outside Tory strongholds.

In Lewisham (not a Tory stronghold), it says the average person of person of working age will lose £600 per year and notes that in the borough "36.1% of neighbourhoods are among the poorest 20% in Britain. The average for local authorities in Great Britain is 15.1%."

The cumulative fall in local spending power is £121 million, which will hurt local shops and businesses. The biggest loss will be through the 1% uprating in benefits (below inflation) representing a £109 cut (compared with a national average of £81), followed by housing benefit (£105 compared with a national average of £37).

Click here to see the map.