:33:13. > :33:16.$$CLEAR $:/STARTFEED. $$CLEAR Hello and a very warm welcome to
:33:16. > :33:19.your local part of the show. Coming up: Was there anything to get
:33:19. > :33:22.excited by in the Queen's Speech? I will be asking the MPs for
:33:22. > :33:25.Middlesbrough and Stockton. Also, as benefit cuts start to bite and
:33:25. > :33:28.there's less money in people's pockets, what impact will it have
:33:28. > :33:31.on local shops and businesses? I have been to Teesside to find out.
:33:31. > :33:35.But let's start with the Queen's Speech. It only lasted seven and a
:33:35. > :33:38.half minutes. Does that mean the Government has run out of steam? Or
:33:38. > :33:43.are they focussing on what matters? But the devil will be in the detail,
:33:43. > :33:48.but it was looking thin from where I was standing. Time will tell, but
:33:48. > :33:58.I did not think there was a great deal in it. We will get into the
:33:58. > :34:06.
:34:06. > :34:10.detail in a moment. It may have it may have been overshadowed somewhat
:34:10. > :34:14.by the departure of a certain football manager, but the coalition
:34:14. > :34:18.does believe the Queen's Speech will be welcomed by voters. Berwick
:34:18. > :34:28.MP Sir Alan Beith said tougher rules on immigration showed the
:34:28. > :34:34.
:34:34. > :34:38.Government had its priorities right. I believe the Government is making
:34:39. > :34:44.steps and the right direction in this area. Critics point to what
:34:44. > :34:48.was not in a speech, in particular a minimum price for alcohol and the
:34:48. > :34:51.introduction of plain packaging on cigarettes. Labour's health
:34:51. > :34:55.spokesman Andy Burnham was visiting Gateshead on Thursday and said the
:34:55. > :35:00.failure to include such measures showed the Government wasn't taking
:35:00. > :35:10.public health -- Public Health in places like the northeast seriously.
:35:10. > :35:12.
:35:12. > :35:22.They are dancing to the UK option. I think this is a major mistake.
:35:22. > :35:23.
:35:23. > :35:28.UKIP tune. The Government also promised a crime bill which
:35:28. > :35:32.criminalises forced marriage and includes new laws on dangerous dogs.
:35:32. > :35:38.Northumbria's police commissioner Vera Barid welcomed some aspects of
:35:38. > :35:41.the bill, but said she had concerns two. I wish they were not getting
:35:41. > :35:49.rid of the ASBO. I think they could have been improved instead of
:35:49. > :35:55.scrapped. The government also plans a shake-up of probation. Other
:35:55. > :36:01.significant bills will see the state pension age increase took 67
:36:01. > :36:06.and a �72,000 cap introduced on social care costs. Are these
:36:06. > :36:16.responses purely to the pressure from it you Cheb? I don't believe
:36:16. > :36:22.they are. -- pressure from UKIP. I don't believe they are. I believe
:36:22. > :36:27.the Government is responding to public concerns. We are reducing
:36:27. > :36:34.immigration by one third already. More can be done. A Home Secretary
:36:34. > :36:41.can tackle this important issue. Account imagined a constituent
:36:41. > :36:50.talking about tobacco packaging. These are major problems in our
:36:50. > :36:55.region. Driving up the cost to people for alcohol is not something
:36:55. > :37:05.the Government should be doing at difficult times. Even if it helps
:37:05. > :37:06.
:37:06. > :37:13.save lives? Are on tobacco packaging, there is not enough
:37:13. > :37:18.evidence that this makes a difference. In Australia, it has
:37:18. > :37:27.become a fashion accessory. It also makes a counterfeit cigarettes
:37:27. > :37:35.easier to produce. The coalition has picked on things that it
:37:35. > :37:41.believes constituents might be concerned about. We have seen crime
:37:41. > :37:49.produce consistently since 1995. Long may that continue. I am not
:37:49. > :37:54.sure that is a priority. What worries me is that deterioration of
:37:54. > :37:58.economic circumstances. That is a real issue for us. You have touched
:37:58. > :38:02.upon the immigration issue. What is a real concern to me is the
:38:02. > :38:09.exploitation of migrant workers who are being exploited and wages are
:38:09. > :38:19.being driven down. You can understand upset regarding wages
:38:19. > :38:19.
:38:19. > :38:26.being driven down by that method. There is also upset regarding
:38:26. > :38:31.health and housing. It makes an attractive story to a son that
:38:31. > :38:34.people coming to this country seeking asylum or refuge, the red
:38:34. > :38:38.carpet is rolled out for them and they're getting preferential
:38:38. > :38:43.treatment. My discussions with those people, it could not be
:38:43. > :38:48.further from that position at all. They are not treated in that way. I
:38:48. > :38:52.met with people a fortnight ago in Middlesbrough for were struggling
:38:52. > :38:56.so much to keep a roof over their heads and to keep food on the table.
:38:56. > :39:03.It was a terrible story and one we should revisit of some intelligence
:39:03. > :39:11.and compassion, instead of headline-grabbing. The economy is
:39:11. > :39:15.the crucial issue. What does the Queen's Speech do about that?
:39:15. > :39:24.of the big measures coming forward will be the employment allowance.
:39:24. > :39:32.That will mean employers will have to pay less national insurance. It
:39:32. > :39:39.is being brought in in 2015. The North East did extremely well with
:39:39. > :39:42.the regional growth money. We are looking at rolling back red tape
:39:42. > :39:47.and making it easier for people to do business. These are not
:39:47. > :39:54.overnight fixes. But there are a number of important measures under
:39:54. > :40:00.to show the government is serious about growing the economy. Jobs and
:40:00. > :40:08.employment affect people every day. Do you accept that the Government
:40:09. > :40:16.is serious about getting people back to work? The jobs crisis is
:40:16. > :40:22.enormous. Her when they talk about the regeneration of this region and
:40:22. > :40:25.the economy doing well, I look at that acid test of the number of
:40:25. > :40:34.people claiming jobseeker's allowance and the figures do not
:40:34. > :40:39.make happy reading. 14%. It is abysmal. Labour keep talking about
:40:39. > :40:45.a jobs guarantee. That is for people who are unemployed for two
:40:45. > :40:54.years. Where are these jobs coming from? It is about giving employers
:40:54. > :41:00.a confidence to take people on knowing that it is properly funded.
:41:00. > :41:08.It is not a jobs guarantee unless you can persuade employers it is
:41:09. > :41:14.worth that? It is about guaranteeing funding for young
:41:14. > :41:19.people and those who have been unemployed for over two years.
:41:19. > :41:23.We're now seeing people who have contributed all their lives due tax
:41:23. > :41:30.and national insurance who are perhaps in the 50s and now they are
:41:30. > :41:36.out of work. It is not realistic. Labour have come out with a raft of
:41:36. > :41:42.measures that would cost nearly �30 billion. The bridge either borrow
:41:42. > :41:46.more or increased taxes. We need to deal with the debt problem and
:41:46. > :41:54.bring the deficit down. This government has done that year on
:41:54. > :42:01.year since they came into power. They are properly funded. We are
:42:01. > :42:06.looking at sharing the load fork -- sharing the load more fairly. Four
:42:06. > :42:14.up him to suggest the economy is in a healthy position, debt is
:42:14. > :42:18.increasing and increasing. credits, child benefit, the new
:42:18. > :42:22.under-occupancy charge. These are all ways in which the Government is
:42:22. > :42:26.cutting the welfare bill to try and control public spending. And that
:42:26. > :42:33.inevitably means there is less money in some people's pockets. How
:42:33. > :42:38.much less? Well, research by Sheffield Hallam University
:42:38. > :42:42.suggests by 2015 the northeast's economy will lose �940 million a
:42:42. > :42:52.year. I went to Middlesbrough to find out what impact that might
:42:52. > :42:54.
:42:54. > :42:57.have,. This woman was a chef until recently. Since April, she has lost
:42:57. > :43:07.�30 from her housing benefit because the government say they
:43:07. > :43:11.have spare bedrooms. I am having to cut back on gas and electricity. I
:43:11. > :43:17.can only afford to do one load of washing each week. The price of
:43:17. > :43:22.food has gone up. The way things are going, I think I will be
:43:22. > :43:27.evicted. I cannot afford this any more. She is not alone. Thousands
:43:27. > :43:32.in Middlesbrough have seen benefits Cup since April. For every pound
:43:32. > :43:35.lost from benefits in Middlesbrough, that is �1 fewer to be spent in
:43:35. > :43:41.local businesses. Some here believe they are already seeing the impact
:43:41. > :43:45.of VAT. Takings in this newsagent are down �2,000 from the same month
:43:45. > :43:53.last year. They believe welfare changes are making customers spent
:43:54. > :43:58.less. We have seen a decrease in our sales regarding alcohol and
:43:58. > :44:03.things which people would class as luxury items. People are having to
:44:03. > :44:09.pay the bills. That comes first. have more changes to come, local
:44:09. > :44:13.businesses could take more hits. The Sheffield Hallam University
:44:13. > :44:22.study estimates welfare reform will take billions of pounds out of the
:44:22. > :44:32.UK economy over the coming years. Middles Brough is predicted to lose
:44:32. > :44:35.
:44:35. > :44:39.�720 million a year -- �720 for every working adult. There are
:44:39. > :44:46.similar figures for other parts of our region. For shopping areas like
:44:46. > :44:52.this, that could be lethal. A There are a lot of businesses in a small
:44:52. > :44:56.area here. If one does not have much business, the other want. If
:44:56. > :45:03.the pub does not have many people in, that affect us because they
:45:04. > :45:08.come here for cigarettes and crisps. The Government insist welfare
:45:08. > :45:14.reform will help not harm the economy, by encouraging people off
:45:14. > :45:21.benefits and into work. This man has already made that move. He now
:45:21. > :45:26.has an apprenticeship. It is fantastic. I am planning a holiday.
:45:26. > :45:32.Before, I was on the dole and I only had limited money. You
:45:32. > :45:37.couldn't do anything. Now I am working here, I go out with friends
:45:37. > :45:42.and do whatever I want. There are Job Centre referred him to a local
:45:42. > :45:49.training company. Their boss is convinced that getting people to
:45:49. > :45:53.earn their own money is the key to economic revival. We all need money
:45:53. > :46:03.in our pockets to spend time with family and friends. That gives
:46:03. > :46:06.people hope. Thousands of others in the North East remain a out to work
:46:06. > :46:12.and on benefits. If that has not changed, hundreds of millions of
:46:12. > :46:16.pounds will disappear from an economy that is already flat lining.
:46:16. > :46:20.I am joined now by Professor Steve Fothergill from the Centre for
:46:20. > :46:23.regional, economic and social research at Sheffield Hallam
:46:23. > :46:27.University which has been looking at the impact of benefactor -- of
:46:27. > :46:34.benefit cuts on the local economy. How do we compare with the rest of
:46:34. > :46:38.the UK? 19 bn in total is likely to be taken out of the UK economy by
:46:38. > :46:42.these benefit reforms. There will be a big difference across the
:46:42. > :46:47.country because clearly the numbers on benefits are much larger in some
:46:47. > :46:53.parts of the country than in others. For those who are in work and on
:46:53. > :47:03.benefits, it is those on low pay in some of the weaker local economies
:47:03. > :47:13.we are talking about. It is predominantly the old industrial
:47:13. > :47:14.
:47:14. > :47:20.regions that face the biggest hits. Part of South England will escape
:47:20. > :47:30.rather lightly. There has been a lot of publicity in recent weeks
:47:30. > :47:31.
:47:31. > :47:38.about the so-called bedroom tax. That is just a small part of the
:47:38. > :47:42.jigsaw. The really big ones are reforms to capacity benefits. They
:47:42. > :47:47.will come in over the next three years. Reforms to the disability
:47:47. > :47:54.living allowance. Often the same people claim of benefits. Those
:47:54. > :48:04.will have a huge impact because we have huge numbers of out of work
:48:04. > :48:08.adults on sickness and disability benefits. Once this be compensated
:48:08. > :48:13.by people been encouraged to go out to work? If we were in an economy
:48:13. > :48:17.that was burning and the Rules of jobs, then increasing the incentive
:48:17. > :48:21.you would think would move more people into work. But that is not
:48:21. > :48:26.the national situation. The big hits in terms of benefit reforms
:48:26. > :48:36.are going to be in places where it is hardest to find work. Places
:48:36. > :48:41.like Middlesbrough are, Hartlepool, Sunderland and South Tyneside. This
:48:41. > :48:48.will simply intensify the scramble for the few available jobs. Do you
:48:48. > :48:52.believe this is a mistake? What is the alternative? We are not setting
:48:52. > :48:56.out in this report to say whether these reforms are a good or bad
:48:56. > :49:02.idea. In principle, I would suspect the best way to get the benefit
:49:02. > :49:08.bill Brown is to get jobs to be created in the labour market so
:49:08. > :49:13.that we don't need to support so many people on out of work benefits.
:49:13. > :49:22.There is short-term pain here, but there could be long-term game if
:49:22. > :49:27.this incentivising his work. -- if this is incentivising people to
:49:27. > :49:32.return to work. We want work to pay. Everyone would agree with that.
:49:32. > :49:36.That has to be the target. This excellent report points out that we
:49:36. > :49:42.are a way of getting people into that position just now. There are
:49:42. > :49:51.not the jobs for people to go to. This is the damage being caused to
:49:51. > :50:01.them in the local economy. �12 million is being taken out of the
:50:01. > :50:01.
:50:02. > :50:06.economy every year in my region. The work programme to get people
:50:06. > :50:13.back into employment is simply not effective. It is not just the
:50:13. > :50:23.impact on the people, but also businesses that is important.
:50:23. > :50:28.
:50:28. > :50:35.cannot use this in a vacuum. �1 spent less on benefits is being
:50:35. > :50:44.kept in the pockets of people paying tax. The challenge we face
:50:44. > :50:54.is that welfare need to pay. Under Labour, people were paid more to
:50:54. > :50:55.
:50:55. > :51:01.remain on welfare than in work. It was running out of control under
:51:01. > :51:11.Labour. The cannot make these changes that incentivising work if
:51:11. > :51:16.
:51:16. > :51:20.the jobs are not there. It is a cycle, the way the economy works.
:51:20. > :51:26.The reality is well for a spending is out of control and needed to be
:51:26. > :51:36.reformed. Labour might oppose that reform, but I think the vast
:51:36. > :51:40.
:51:40. > :51:44.majority of people support it. It will ensure that work always pays.
:51:44. > :51:53.This money would have to be taken out of the economy in other ways.
:51:53. > :52:00.It was taxpayer money. Any welfare regime has to be reviewed to
:52:00. > :52:09.continually. There is opposition because the Conservative-led
:52:09. > :52:13.government are standing up for the wrong people. Where are other
:52:13. > :52:17.priorities? It is not with the poor and vulnerable people. It is not
:52:17. > :52:22.about getting jobs going. Every time a Conservative government
:52:22. > :52:31.comes into power, they favour the rich and condemn places like the
:52:31. > :52:36.North East of England to to poverty. Nobody from Labour has said which
:52:36. > :52:44.ones would be reversed if they came into government. We would not have
:52:44. > :52:49.introduced the bedroom tax. If you think it is immoral, you would say
:52:49. > :52:54.that you would not do it? Were we're not in government. We're
:52:54. > :53:02.saying this is not an effective way of addressing welfare reform. It is
:53:02. > :53:06.grossly unfair. The Queen's Speech was about a fairer society. I am
:53:06. > :53:16.yet to see any evidence of that. Shh didn't you be standing up to
:53:16. > :53:22.
:53:22. > :53:28.some of your colleagues? Your constituency will have -- will be
:53:28. > :53:34.affected by this and parts of the South of England will not. A I want
:53:34. > :53:39.to help. If we do not reform welfare, it will become
:53:39. > :53:43.unaffordable. We have had years and years of welfare spending going up
:53:43. > :53:47.and up in places like Middlesbrough are and not seeing any benefit from
:53:47. > :53:56.it. The economy has not healed. This is about creating a system
:53:56. > :54:05.that is fair when at work will always pay. Labour will not reform
:54:05. > :54:08.or repeal any of this. It has been an exciting week for a
:54:08. > :54:16.former social worker from South Tyneside. With that and the rest of
:54:16. > :54:20.the political news here is the week in 60 seconds.
:54:20. > :54:27.The team reviewing high death-rate in hospitals across England has
:54:27. > :54:34.turned its attention to Cumbria. The NHS Trust in that region is
:54:34. > :54:44.under review, along with 13 others. The first woman to represent the
:54:44. > :54:49.
:54:49. > :54:55.seat of South Shields has been sworn in. Councils in Teesside and
:54:55. > :55:05.Durham are all over �70 million in unpaid council tax. Durham comes
:55:05. > :55:07.
:55:07. > :55:17.off worst. Stockton is owed just under �4 million. A memorial to the
:55:17. > :55:20.
:55:20. > :55:23.Bevin Boys has been unveiled. That is all from us. There is lots
:55:23. > :55:27.more on my blog on the BBC website. And on Twitter you can choose to