Labour Market Activity

Debate between Jonathan Ashworth and Ben Bradley

Tuesday 28th February 2023 Commons Chamber

[Jonathan Ashworth]

The problem is that the Government are one-trick ponies. They think that that is the answer to getting people back to work, but what we need is a plan to deal with the economically inactive, not just to apply conditions for those receiving unemployment-related benefit on universal credit.

Different parts of the country face different economic needs. In broad-brush terms, in coastal and some former industrial areas, we tend to see lower labour market participation rates and relatively fewer vacancies. In many parts of London and the south-east, we tend to see higher labour market participation, but also relatively fewer vacancies. In major cities such as Birmingham, Leicester, Coventry and Liverpool, we tend to see lower labour market participation, but often higher vacancies. The point is that different economies have different economic needs. Different labour markets have different economic needs. Instead of nationally contracting to deliver one-size-fits-all employment schemes designed from behind a desk in Caxton House, and instead of forcing Mayors—in the words of Andy Street—to go with a “begging bowl” to Whitehall, we should shift power and resources to local communities because, as the leader of Nottingham County Council, the hon. Member for Mansfield (Ben Bradley), said in a very good Red Box article a few weeks ago:

“Local leaders are too often hampered by the Whitehall knows best approach…Employment support programmes are commissioned based on national guidelines, not local needs…Fixing economic inactivity needs a radical pro-devolution mindset.”

I absolutely agree with him.

[Ben Bradley (Mansfield) (Con)]

I thank the right hon. Gentleman for his kind words and for giving way. I should mention that I co-wrote that article with Adam Hawksbee of Onward.

The right hon. Gentleman is absolutely right. He mentioned Mansfield’s statistics and the high levels of economic inactivity. These schemes are best built with local employers and training providers so that they can be bespoke for those needs, with the flexibility that was mentioned earlier; I am sure he would agree with that. Will he join me in calling on Ministers to pilot that in the east midlands when we get our combined authority next year?

[Jonathan Ashworth]

Absolutely. Of course, a Labour Government will definitely deliver more resources. I hope that we can pilot that in the east midlands combined authority, as well as in the Leicester area—the hon. Gentleman will know what that is a reference to.