91Èȱ¬

An artist's impression of one of the new aircraft carriers that's under review by the Government

In less than a week we'll finally know the scale of the cuts the North is facing.

We know the public sector will be trimmed back by 25% to 40% in the Comprehensive Spending Review; we can be sure that will lead to job losses.

But how many?

One reliable source that would rather keep quiet at this stage has told me that just in the the North East there could be 60,000 jobs lost as a result of the cuts.

And certainly the trades unions believe that figure could be accurate.

They think 30,000 public sector workers could lose their jobs, with that figure doubling due to the collateral damage to the private sector.

Of course, it's possible that substantial numbers of those jobs may go through natural wastage and early retirement.

But if the 60,000 figure is correct, there will be people joining the dole queue.

That though is only one side of the story.

The Government is hoping it can encourage growth in the private sector to help the northern regions that have become so dependent on state spending.

But several key potential private sector projects could yet be hit by government cuts.

Hitachi wants to build a new generation of express trains in County Durham

Take the plans to build a new generation of express trains in the North East.

Hitachi sees Newton Aycliffe as its preferred site for a factory to build the new locomotives.

The factory could create 800 jobs, but local politicians believe the development could generate up to 10,000 jobs in total through the supply chain and associated boost to the local economy.

No wonder they're calling it 'the new Nissan'.

But the plan depends on a £7.5bn government contract. That's been on hold since before the election. A decision is expected in next Wednesday's spending review.

There are mixed signals, but this week suggested it is very much in the balance.

Then there's the plans to make the North East the main centre for the manufacturing of offshore wind turbines.

Work has already begun to site a factory in the Tyne's former shipyards, and Teesside had also hoped to get a slice of the trade.

, and could be cancelled.

And next week we'll also get news on whether the Ministry of Defence is pressing ahead with .

and Cumbria.

But all that could be lost if the Government decides to cancel the order.

A lot then is riding on next week's review both inside and outside the public sector.

Of course the Government can point to the Regional Growth Fund, and its National Insurance incentives as evidence that it is trying to help the region.

They'll point to the billions of pounds of public money that will still be spent in the North.

But just imagine how much capital Labour will get out of the review if alongside public sector cuts, it also brings an end to projects which could have created new jobs in the North.

• Bookmark with:
• |
• |
• |
• |
• - What's this?