London Daily

Focus on the big picture.
Friday, Sep 11, 2026

Autumn Statement: Who do spending cuts hit the most?

Autumn Statement: Who do spending cuts hit the most?

The government is expected to announce plans to raise £20bn in tax alongside extensive spending cuts, as part of its Autumn Statement on Thursday.

It's a bid to plug an estimated £55bn black hole in the nation's finances, and it echoes the original austerity plans unveiled back in 2010.

Over the last 12 years, I've seen the impact those cuts have had at a local level. From the lack of police in Hartlepool, to the cuts to addiction services in Barrow-in-Furness.

Perhaps most strikingly, I've also reported from more and more food banks across the UK. They once felt like a novelty, now their use is a fact of life in so many communities.

But what does the data show us about who those spending cuts will affect the most?

In June 2010, the government faced similarly tough choices to those Rishi Sunak is confronted with today. The UK's finances were in a mess following the 2008 global financial crisis. The government had spent hundreds of billions of pounds shoring up the economy, including rescuing several major banks.

The then chancellor, George Osborne, introduced a wide range of spending cuts in an emergency budget, which he called "tough, but fair."

It included cuts in most areas of public life, but in particular local government and welfare. Housing benefit was reduced, school buildings weren't repaired and Sure Start children's centres were cut, among many other measures.

At the time, Mr Osborne said the consequence of not trying to reduce the UK's deficit would be "severe" - he warned of "higher interest rates, more business failures, sharper rises in unemployment". He promised, while the process might be painful, "we are all in this together".

And while his cuts - alongside tax rises - did affect the whole country, evidence built up since 2010 is clear; the impact was not equally felt.

Take a look at this data from the Office for National Statistics (ONS), which shows the change in average household wealth between 2006 and 2020, after inflation.

It suggests that in London, average household wealth increased by 63%, to £340,300. By contrast, in north-east England it fell by 17%, to £168,500.



The data combines the change in the value of different sources of wealth, such as property, private pension pots and savings, and highlights how unequally England has developed in recent years.

That's something underlined in a report published by public health expert Professor Sir Michael Marmot, in 2020.

He found, since 2010, while London had become the richest area in northern Europe, the UK also contained six of the 10 poorest regions.

The North East's sluggish performance has had real-world consequences.

Since 2014, child poverty in the region grew by 46% to the highest rate in England. In an average classroom of 30 children in the North East, 11 are living in poverty.

A head teacher from Wallsend, in north Tyneside, recently told me the cuts to Sure Start centres had resulted in many children starting school well below the social and academic level of previous intakes.

Benefit cuts and an increase in unstable, often zero-hour contract work, had left more families needing a referral to a local food bank - although the more recent cost of living crisis had also been a factor.


The North East saw the greatest cuts to services for children and young people, and the largest reduction in spending per person. Life expectancy also fell in some of the North East's most deprived communities.

Indeed across the UK, some experts have made a link between austerity and some people dying younger. Last month, Glasgow University researchers suggested 335,000 excess deaths in Scotland, England and Wales between 2012 and 2019 could be largely attributed to the public spending cuts first introduced in 2010.

The study, the authors say, adds to the "growing evidence of deeply worrying changes to mortality trends in the UK" - particularly among deprived communities.


The rise of baby banks


The cuts and freezes to welfare benefits during the decade after 2010 have been consistently blamed for the explosion in food banks, something I looked at earlier this year.

Less appreciated is the huge increase in another emergency provision - so called "baby banks", which supply nappies, clothing, shoes and sometimes school uniforms for little or no money.

There appears to have been little more than a handful of these in existence prior to 2010. Today there are more than 200 across the UK. The Little Village network, which compiled the map, acknowledges that the pandemic also had an impact.


Successive government ministers spent years denying austerity had any negative consequences.

This was a position largely held onto until, in 2019, then Prime Minister Boris Johnson said he had long thought austerity "was just not the right way forward for the UK".

Until then, most ministers had argued the cuts were unavoidable for the long-term economic health of the UK, and a less generous welfare system had been responsible for record levels of employment - in effect, forcing people to get a job.


Tough decisions


The aim of the 2010 emergency budget was to "put in order the nation's finances" by cutting the UK's debt and reducing its deficit - which is the amount a country allocates to day-to-day spending versus how much it brings in.

Economically, it did have some success, and the deficit fell by 75% between 2009 and 2019, before the Coved-19 pandemic hit. But national debt actually increased over the same period by a fifth as a percentage of GDP.


Ahead of this week's Autumn Statement, Simon Clarke, the MP for Middlesbrough South and East Cleveland, told me "there is scope for spending to come down".

The former levelling up secretary added: "I don't think people would say that their communities have been left scarred by those spending reductions. There is scope for it to come down without impacting on people's lives.

"The state has had to take too much of the strain precisely because the private sector hasn't been resilient enough and so people have therefore been disproportionately reliant on it."

In interviews this week, Chancellor Jeremy Hunt said his plan would be fair and show both compassion and support "for the most vulnerable".

But he also didn't shy away from saying difficult decisions would have to be made for the long-term health of the country's finances. It's essentially the same argument George Osborne used 12 years ago.

Whatever the government announces on Thursday, the decisions it makes are going to have real-life consequences for millions of people. And if the 2010 budget taught us one thing - it's that public spending cuts hit poorer communities harder.

Newsletter

Related Articles

0:00
0:00
Close
Buckingham Palace Says Prince Harry and Meghan Will Not Resume Official Royal Duties
UK Treasury Faces Calls to Scrap £100,000 Childcare Support Threshold
Trades Union Congress Urges Labour Government to Rewrite Migration Policy
Riot Police Deployed After Anti-Migrant Protests Turn Violent in Portsmouth
UK Considers Replacing Some Disability Cash Payments With Direct Services
JPMorgan’s Jamie Dimon Warns UK Chancellor Against Higher Banking Taxes
UK Announces New Sanctions Targeting Israeli Settlements in West Bank
Metropolitan Police Investigate Alleged Illegal Donations to Reform UK
UK Charges Wiltshire Man With Assisting Russian Intelligence
UK Orders Urgent Review After Air Traffic Failure Cancels More Than 2,000 Flights
Merz Rebukes AfD Expansion in Saxony-Anhalt
King Charles Confirms Prince Harry and Meghan Will Remain Private Citizens
Labour Selects Former Child Refugee for By-Election in Keir Starmer’s Former Seat
Foreign Private Equity Accelerates Takeovers of London-Listed Industrial Companies
NHS Maternity Care Faces Scrutiny Over Support for Mothers After Caesarean Births
BBC Warns Staff Strikes Are Likely Amid Job Cuts and Programme Cancellations
English Housing Affordability Improves to Best Level in More Than a Decade
UK Health Commission Proposes Framework for Wider AI Adoption Across NHS
Labour Faces Pressure for Wealth Tax Ahead of Autumn Budget
Metropolitan Police Open Criminal Investigation Into Alleged Foreign Donations to Reform UK
UK Police Deploy Riot Officers After Anti-Immigration Unrest in Portsmouth and Dover
UK Defends Sanctions on Israeli Settlements Despite Diplomatic Retaliation
UK Air Traffic Control Failure Cancels More Than 1,000 Flights and Disrupts 65,000 Passengers
Compass Urges £10 Million Wealth Tax and Public Ownership Ahead of UK Autumn Budget
UK Government’s Devolution Plans Face House of Lords Scrutiny
Maldives Seeks New Chagos Sovereignty Talks With UK Prime Minister Andy Burnham
UK Airports Face Continuing Disruption After National Air Traffic Control Failure
UK Bans Imports From Israeli Settlements and Expands Sanctions on Iran
British Chambers of Commerce Forecasts UK Growth of 1% as Investment Remains Weak
UK Suspends Local Government Reorganisation Decisions and Cancels Planned Shadow Authority Polls
UK Parliament Opens Inquiry Into Gaps in Climate Change Preparedness
Andy Burnham and Xi Jinping Hold Talks on Trade, Security and British Consular Cases
UK Joins France, Canada and Other Nations in Measures Against Israeli West Bank Settlements
UK Announces New Sanctions Targeting Iranian Nuclear and Military Networks
British Chambers of Commerce Calls for Business Rate Reform and Productivity Support
UK Farmers Warn Dry Summer Could Reduce Crop Yields and Push Up Food Prices
UK Rail Networks Hit by Widespread Delays After Major Signalling Failures
Matt Clifford Resigns as ARIA Chair After Conflict-of-Interest Scrutiny
UK and France Say Joint Border Operations Have Prevented More Than 48,000 Irregular Channel Crossings
UK Core Inflation Remains Above Expectations as Utility and Commodity Costs Stay Elevated
Jaguar Land Rover Considers Up to 4,000 UK Job Cuts Amid Automotive Industry Pressure
UK Government Pauses Local Authority Reorganisation for Legal Review
UK Public Borrowing Reaches £1.8 Billion in July, Adding Pressure Before Autumn Budget
Chancellor John Healey Puts Regional Devolution and Fiscal Discipline at Heart of UK Growth Plan
Counter-Terrorism Police Lead Salford Investigation After Two Teenagers Charged
UK Rejects Financial Reparations for Transatlantic Slavery
UK and Egypt Step Up Diplomacy Over Escalating West Bank Tensions
UK Pauses Council Reorganisation Across Four English Counties
Jaguar Land Rover Plans 4,000 Job Cuts in Major UK Restructuring
UK Unveils Planning and Regulatory Overhaul to Speed Infrastructure and Economic Growth
×