By Maximilian Clarke

With an average loss of £390 per person, Yorkshire and the Humber has emerged as the region hardest-hit by the coalition government’s deficit reduction programme, the Trades Union Congress has said.

This equates to a 4.4% drop in spending- exceeding the UK 3.8% average. Londoners have had the biggest financial cut- at £399 per head, though as a percentage of earnings the sum is lower.

This level of cutting, argue the Congress, is eroding local business confidence, fuelling unemployment and further exacerbating the effects of economic downturn; delaying recovery.

“Areas of high public sector employment are particularly vulnerable to higher joblessness and reduced consumer demand, which in turn is stifling the private sector,” said TUC chief, Brenden Barber. “Areas of high public sector employment are particularly vulnerable to higher joblessness and reduced consumer demand, which in turn is stifling the private sector.”

The Union advocate increasing investment in order to stimulate local growth- a proposal that economic organisations including the British Chambers of Commerce reject, considering maintaining the UK's AAA credit rating will deliver greater economic rewards than social spending.

The Paris-based economic think-tank, OECD (Organisation for Economic Co-operation and Development)remains in support of the cuts-agends, though in their latest GDP forecast they recommended easing back on cuts in order to nurture consumer confidence.

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