Section 2: Economic inequality in Gateshead

The country has had over ten years of austerity which has seen public sector funding continually reduced by central government - we have lost nearly half of our previous funding, the equivalent of £900 less to spend per year on every household in Gateshead. Austerity has resulted in a significantly reduced universal and preventative service offer which, combined with a growth in the older population alongside the local impact of welfare reform, has produced an increase in demand for more expensive crisis services. Intervening late is morally wrong, but it doesn't make economic sense either, as it leads to poor outcomes for individuals and escalates that overall cost. (Gateshead health and Wellbeing Strategy: Good Jobs, homes, health and friends)

The combination of austerity and increasing need has meant it has become ever more difficult for all services to respond with the help and support people require. In this context closing the inequality gap is an even bigger challenge which will need us to look beyond ill health treatment and social care services. The most effective way of ensuring people have the best chance of thriving is to make sure they have a good education and access to good quality work and enough income to meet their needs.