Youth Unemployment

Eilidh Whiteford Excerpts

Wednesday 9th November 2011 Commons Chamber

[Chris Grayling]

It is my view that had we not taken those steps, interest rates would be higher, investment would be lower and unemployment would be higher than it is today. I know it is a point of difference between the two sides of the House, but Labour’s alternative strategy would simply involve Britain borrowing more money. I do not understand how it is possible to solve a crisis created by too much borrowing by borrowing even more.

[Dr Eilidh Whiteford (Banff and Buchan) (SNP)]

I welcome the Minister’s acknowledgement that youth unemployment is to a large extent symptomatic of the fragility of the wider economy, but will he also acknowledge that the Government’s approach to the wider economy is not working and is actually exacerbating youth unemployment?

[Chris Grayling]

I do not accept that. I shall briefly set out some of the measures we are taking on the broader economic front that will make a difference to unemployment.

The regional growth fund is now delivering investment to parts of the economy where the private sector is too small, and where we want to see private sector growth, and the research and development and investment in infrastructure that creates jobs. The introduction of enterprise zones in parts of the country where the private sector is weak will encourage businesses to grow and develop. The cut in corporation tax will deliver the lowest headline rate in the developed world. Those are examples of measures that will help to make Britain a better place to do business.