It’s going to be tough: Clegg

Deputy Prime Minister Nick Clegg believes the coalition has put in place sufficient measures to help Oldham deal with hundreds of job losses.

Mr Clegg was told of the 800 jobs set to be lost at the Lib-Dem-controlled council by Chronicle Editor David Whaley at an event in Westminster.

On fears no private growth will happen across the borough, Mr Clegg admitted “it is going to be tough,” but hoped coalition policies to rebalance the economy would be looked on favourably.

Speaking about the council settlement which sees Oldham lose almost £30 million in two years he said: “Is it going to be tough? Of course it is.

“The Local Government settlement is very tough, one of the toughest in living memory.

“If you look at what we are handing back to councils in return, local authorities will be able to borrow for the first time money against projected revenues of business rates or big developments so they are not constantly having to wait from handouts from Whitehall.”

Mr Clegg said more than 300,000 private sector jobs had been created in recent months and said the Government would “hold firm” on giving a clear roadmap to encourage businesses to start employing. There would be more apprenticeships than ever before, he added.

But he also admitted that demand for Government funding to create new jobs is much higher than the amount of cash available. The Deputy Prime Minister revealed there have been almost 450 bids for support from the Regional Growth Fund (RGF).

So far the bids come to well over £2 billion — and demand is far outstripping supply. There is only £1.4 billion in the RGF.

Mr Clegg also conceded that Liberal Democrat councillors face a tough fight on the doorstep at May’s elections as the party nationally makes a series of difficult choices on spending.

But he hopes over time the reforms the coalition introduces will be viewed favourably.