Section 2: Economic inequality in Gateshead

The economy is identified as a key priority in our refreshed health and wellbeing strategy. While Gateshead's economy has grown in recent years and increasing numbers of residents have moved into employment, we know that opportunity and prosperity are unevenly distributed across the borough, which is unsustainable.

For too many, recent employment growth has been precarious; some jobs are out of reach, whereas other roles do not offer enough hours, pay or progression to support households and families. As a result, there are few incentives for residents to improve their skills and earning potential or pursue self- employment.

These trends are contributing to declining living standards and producing enduring and rising inequality. The economic and social cost: long hours; problem debt; family breakdown, poor health, and crime fuel insatiable demand for crisis support. As people struggle to find work or toil more for less in growing numbers, the council can no longer raise enough revenue to heal the harm. Austerity has compounded the problem - increasing the scale of the challenge - while reducing the funding of vital intervention.

There is scope to nurture an environment that encourages new businesses to start up and grow, create more good jobs, and ensure our residents have the knowledge, skills, and confidence to get on at work instead of struggling to get by.

We want Gateshead to be a place with a flourishing economy that enables everybody to achieve their full potential. Preventing Gateshead residents from getting stuck in poor quality employment, removing the working poverty trap, and making self-employment a viable option for local entrepreneurs are essential to a thriving economy and better future for the borough.

Gateshead is supporting local regeneration by helping people to gain new skills, get back into work, start their own business or repurpose community assets to improve local wealth. Self-employment can be a good option for people who want to generate their own income or run a business. The New Enterprise Allowance programme provides someone with either a mental health or physical disability to establish an enterprise to suit their needs.