Nationwide spending cuts of £83billion have been announced by Chancellor George Osborne, with Liverpool being seen as one the worst affected areas.
The Chancellor outlined the cuts to the House of Commons and claimed that they are vital in reducing the UK's £155billion deficit. He said: “Today’s the day when Britain steps back from the brink, when we confront the bills from a decade of debt."
The cuts, which came as part of the coalition Government's Comprehensive Spending Review, look likely to be felt across all areas of the city, with those working in the public sector and people on state benefits expected to bear the brunt of the savings.
However, there was an element of good news in Merseyside
among the cuts as two major transport schemes, the £431 million
rail lines were given the go-ahead, after being deemed as vital for
Head of the planning team at DLA Piper, the company representing
Halton Borough Council on the Mersey Gateway scheme, said: “The
Chancellor’s confirmation of support for the Mersey Gateway project
and the electrification of the rail link between Liverpool and
Manchester, is a vote of confidence for the North West.
"These projects have been in the pipeline for a substantial period
of time - the fact that both have survived such widespread cuts is a
clear signal of their importance to the regional economy."
Elsewhere in the transport sector, a 10% rise in rail fares will come
into force next year as well as an average 5% increase on the cost of bus journeys, which will no doubt be a concern for Merseytravel passengers and other commuters to the city.
The cuts, which are the most severe in years, will come as a devastating blow to those working in the public sector as it was announced that 490,000 jobs would be lost by 2015, with around 10,000 expected to be axed at Revenue and Customs, and 14,000 posts in the justice system.
CEO of Liverpool Chamber of Commerce, Jack Stopforth, expressed his fears over public sector cuts. he said: "Business has long since weaned itself off the grant dependency of earlier generations but still needs publicly funded contracts to sustain its recovery. The private sector locally is still too small to absorb large scale public sector job losses."
JMU Journalism went out onto the streets of Liverpool in the 48 hours following the cuts announcement to test public reaction to the Government Spending Review. Scroll down through the comments below to find out what people in the city think about the cuts.
Additional reporting by: Nicole Addy; Jamie Allen; Hannah Ashraf; Lucy Baines; Danielle Baldwin; Joe Barnes; Rachael Bentham; Sarah Bold; Ian Bolland; Christopher Bratt; Jonathan Bridge; Emma Callum;
Rosie Cameron; Kevin Carey; Rory Cringle; Katie Croft; Sinead Cunningham; Jess Etherington; Patrick Hemus; Amber Hughes; Lauren Kelly; Sophie Marsden; Ryan McCann; Duke Menango; Calum Metcalfe;
Marta Miles; Kate Molyneux; Lauren Murphy; Josh Parry; Natalie Romero; Michaela Shaw; Arild Skjaeveland; David Williamson; Claire Woodmason; Sanna Zahid; Emma Hunter; Alice Kirkland; Joshua Killner; Samuel McDonnell; Philippa Probert; Urwi Patel; Hayley Minn; Joshua Nevett; Scott Fitzpatrick; James McGarry;
Tara Lamb; Cillian McGinn; Alice Kirkland; Emma Kemmery; Phoebe Au; Karina Galli; Vanessa Gainford;
Sara Ainsworth; Josh Boland; Eivind Haugstad-Kleiven; Joe Lanigan-Smith; Joel Richards; Adam Davies; Michaela Routledge; Elisha Storrow; Mayuri Gore; Madeleine Cornforth; Paul Collins; Daniel Farrell;
Alice Townrow; Abby Wynn, Joel Sanderson-Murray & Marc Duncan.
By Helen Dodd & Jonathan Birchall
More JMU Journalism stories
The upgrade of rail lines between the city and Manchester is still on but the review will hit the public hard