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.


Anon said...

Fewer betting shops then, so some good will come out of it.

Brockley Nick said...

Or maybe more.

terrencetrentderby said...

Speaks more of New Labour's failure to turn round the inner city in 13 years. Lewisham is not an isolated ex industrial Northern town the population had the potential to not be so deprived.

Guest said...

I disagree with the analysis. Reading carefully about the cuts, they will result predominantly on housing benefits cuts with increased proportion to those who live in houses that are too large for their needs. The policy clearly indicates that in these cases alternative, cheaper/smaller alternative housing should be seek.

I think this is about optimization of resources, and may lead to more properties becoming available for working higher income families that need the space, thus resulting in an increase of spending power for the area.

I am not advocating in favor or against the policy, but believe that your argument that will result in a drop of wealth for the area may be misplaced

Ian Convery said...

What a cold blooded response. This isn't about a set of figures and how it will afeectnyour house prices, this is about human beings and the quality of their lives.

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