Bury politicians have spoken out after Chancellor Rachel Reeves said the previous government had "covered up" a "£22 billion hole" in spending.
The Chancellor announced a range of cuts in a speech to the House of Commons on Monday, July 29, including means-testing pensioners' winter fuel payments and the cancellation of infrastructure projects.
The cuts will affect transport plans in Bury and surrounding areas – with the axing of the Restoring your Railway Fund, which had funded business cases for a tram from Radcliffe to Bolton and a train to Rawtenstall from Bury.
Dubbed the "City Valley Rail Link", the proposals saw Rossendale Borough Council making the case for a commuter and visitor rail link to be restored between the two towns, with an interchange to Metrolink trams at Buckley Wells – something the borough council had said could grow the local economy by "at least 3,100 new jobs over the next 25 years" back in a 2021 report.
Bury Tory leader says tax hikes on the way
Leader of the Conservatives on Bury Council, Cllr Russell Bernstein, said half of the "black hole" was due to the implementation of a public sector pay rise by the new Labour government, and that the ruling party wanted "to appease their friends in trade unions and other organisations".
He said: “In some ways I think we all felt there were some hidden things Labour weren’t saying during the campaign, and I think it’s laying the ground for what is likely to be tax increases coming out of the budget in October.
“Obviously the fuel allowance is going to affect many people in Bury who do rely on that. I know it’s going to go to the few who are means-tested, but it’s this continual debate we have about means testing, isn’t it?
“There are loads of people, and I’m sure there’s lots of pensioners in Bury, who today will be considering themselves to be subsidising the wage increases that Labour decided to implement.”
Cllr Bernstein said he believed the "black hole" was part of "window dressing for tax hikes in the budget", which is due to be announced in October.
On the cancellation of transport schemes, Cllr Bernstein said he was in agreement with the Labour Greater Manchester mayor Andy Burnham, that transport schemes "create growth".
He added: “Every country in the world that has a successful transport network receives some sort of subsidy, we only have to look in London, but it’s the level of that subsidy that I think’s the vital point of discussion.
“What we’re seeing here and what’s announced on Monday, local schemes that are likely to provide some impetus for local economic growth are now going to be taken away.
“So it begins to already contradict some of the bigger headlines that government wants to concentrate on in increasing economic growth, because the growth locally that contributes to that national position is being eroded.”
Labour MP: Transport schemes were ‘poor value for money projects’
Labour’s Bury North MP James Frith said the Conservatives had "covered up an ever-bigger mess", and that he would ensure local transport networks were "uppermost in the mind" of the transport secretary.
However, he called the cancelled transport schemes "poor value for money projects".
He said: “Labour’s Rachel Reeves has this week exposed a £22 billion Tory cover up who created a massive hole in the public finances before masking their failure as a government with unfunded gimmicks including so-called plans for our local transport.
“The Tories knowingly overspent departmental budgets, covered it up, called an election and then ran away from the problem.
“We already knew things were bad – with taxes at a 70-year high and debt through the roof. But it’s clear now that the Tories covered up an ever bigger mess.
“This new Labour government has committed to increase the basic and new State Pension each year by the Triple Lock.”
He added: “I will ensure our needs locally here in Bury and our local networks are uppermost in the mind of the Transport Secretary’s thorough review of all of the previous government’s transport commitments.
“We will not grow the economy by committing to spend more than we can afford on poor value for money projects.
“We are being honest about those schemes that had little chance of ever affording to leave the station and provide the lowest economic value.
“The Transport Secretary’s review of the previous government’s transport commitments will put making economic growth possible at its heart.”
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