Rebecca Long Bailey, Labour’s Shadow Exchequer Secretary, speaking at the AJ Bell Stadium in Salford, on how the Tories are failing local economies in the North of England, said:

“Leading economists the world over are coming out in their droves to confirm that austerity is not credible so this is not just socialist idealism on my part, austerity and neoliberalism simply do not function as an ideology.

“We need to raise living standards and develop alternatives to austerity that empower local communities and create a diverse, balanced and resilient local economy.

“There are many future challenges for the economic vision we develop, these challenges are the greatest for communities like Salford and other northern towns and cities previously stripped of their industry and economic purpose.

“We need to build an economy that works for ordinary people and their communities. An economy that works for the North and decentralises political and economic power but in a sensible and pragmatic way not to create a wild west of competing devolved regions all stripped bare of government resources nor indeed an overarching national industrial strategy which, given the Government current trajectory, is what I fear we will see.

“All areas of the UK can be productive and contribute toward the national economy, but we need to enable and expand revenue generation at a local level and I would like to see local authorities and communities being empowered to do so.

“Here in Salford we have a crisis in financial inclusion. People just can’t access banks anymore. Seven Council wards now have no banks located within them at all and some of these areas fall within the 10% most deprived areas in the country.

“This results in many people resorting to pay day lenders and loan sharks who charge exorbitant interest rates and force borrowers to become trapped in a cycle of debt difficult to emerge from. This is not only catastrophic for the borrowers in question but it is also a drain on the local economy.

“Research carried out by the University of Salford in 2008 estimated that over £3m per year was leaving Salford in the form of interest payments to non-Salford companies such as pay day lenders and home credit companies. That is money that should be spent within the local economy.

“Greater Manchester is currently negotiating its devolved powers with central government. This is a prime opportunity for our area but it also poses significant challenges. Low income families are at the fore front of these challenges, Unemployment is still a scourge that affects many and across the UK household incomes are declining. 

“We need an economy that understands and recognises the power of our local economy and the power we have as consumers innovators and manufacturers.

“If we are to see growth driven from below then communities need financial institutions to deliver this. Money needs to be recycled into our communities wherever possible.”

“New financial institutions like the nascent ‘Bank of Salford’ project could be the answer and they could also re write the rules on local lending”

“Financial institutions are just one area to examine on our journey today. We can make the case for locally led growth where a diverse range of small and medium sized enterprises’ are supported and serve the needs of the national economy without leaving behind the local community.

“We know austerity doesn’t work, now is the time to write the introduction to a new economic era.”