YESTERDAY’S Spending Review from Rishi Sunak on public sector workers pay being frozen has been dubbed ‘a kick in the teeth’. Unemployment is forecast to hit 2.6 million by the middle of 2021, official forecasts from the Office for Budget Responsibility (OBR) said. The 'long-term scarring' from the crisis means that in 2025 the economy will still be around three per cent smaller than had been expected in March this year, Mr Sunak told MPs. South Lakes MP Tim Farron said: “The announcement will effectively serve as a pay cut for teachers, carers, police officers and so many other key public-sector workers. “They have been on the front-line throughout this pandemic, and so to treat them in this way is outrageously rude, ungrateful and unacceptable.” Cumbria Chamber of Commerce however, is urging local authorities and Cumbria LEP to act quickly to ensure the county benefits from Rishi Sunak’s new levelling-up fund. The Chancellor announced the £4bn fund as part of his spending review. Areas will be able to bid for funding up to £20m for projects that have a “real impact”. They must be delivered during this Parliament and command local support. Examples he gave included new bypasses, upgraded railway stations and schemes to reduce traffic or open or enhance libraries, museums, and galleries.

The Westmorland Gazette: Rob Johnston chief exective of Cumbria Chamber of CommerceRob Johnston chief exective of Cumbria Chamber of Commerce

Chamber Chief Executive Rob Johnston: “This represents a great opportunity for Cumbria. “It’s vital that the powers that be act quickly because, I suspect, it will be a case of first-come first-served.” The Chancellor also announced: • A £3bn three-year Restart Programme to help the long-term unemployed retrain for work; • A public-sector pay freeze next year, although NHS workers are exempt and all public sector workers earning less than £24,000 will get a £250 increase; • A 2.2 per cent increase in the National Living Wage to £8.91 an hour, which will apply to workers over-23 rather than the over-25s as is the case now. Mr Sunak warned that the economy was set to shrink by 11.3 per cent this year and would not recover to pre-Covid levels until the end of 2022. Unemployment would continue rising to peak at 2.6m in the second quarter of next year. Mr Johnston said: “The Restart Programme should help to reskill workers that will be needed as the economy recovers. “That’s especially important in Cumbria because our working-age population is shrinking and some sectors of our economy have become dependent on EU migrant workers who will be frozen out by the new points-based immigration system.”

The Westmorland Gazette: National Chair of the Police Federation of England and Wales John ApterNational Chair of the Police Federation of England and Wales John Apter

John Apter, national chair of the Police Federation of England and Wales, said: “After years of austerity and a real terms pay cut of 18 per cent, this news will be a kick in the teeth for police officers. “This year my colleagues have been on the frontline in the battle against COVID-19, protecting the public and putting their own safety and the safety of their families at risk. Despite the warm words and the weekly applause for key workers, it seems to count for nothing. “We are realists; we know that the country is facing a difficult economic future. But rewarding those who have played a vital role in the fight against the virus with a pay freeze is nothing short of a disgrace. “A handful of officers will get the additional £250 for the lowest paid workers, but only those who are already on an appallingly low starting salary for the dangerous job they do. “I appreciate the devil will be in the detail, but the headlines from today’s announcement does nothing to show appreciation to police officers and other public sector workers who have kept the wheels turning during 2020.”