Youth Unemployment

Mark Lazarowicz Excerpts

Wednesday 9th November 2011 Commons Chamber

[Derek Twigg (Halton) (Lab)]

There could hardly be an issue of greater importance to my constituents in these challenging economic times than jobs and security for their families. Almost every day I hear about the consequences of unemployment and poverty in my constituency. It is not just about people losing their jobs; it is about people losing their homes or worrying about keeping their homes and the resulting stresses on family life.

Youth unemployment is a major concern in my constituency. Nationally it is at an 18-year high, at 991,000, with long-term youth unemployment up by almost two thirds this January and by a staggering four fifths in Halton. We are again seeing the familiar face of Conservative Governments: mass unemployment, people being thrown on the scrapheap and young people hit particularly hard. To put things in context, back in 1993, in the twilight of the miserable 18 years of Conservative rule, youth unemployment in Halton stood at a massive 22.7%, and it was almost 27% in the autumn of 1985. For most of the early 1990s the rate remained stubbornly above 20%, even as late as 1996, well after the last recession.

Under the Labour Government youth unemployment in Halton was mostly below 10%, which was not good enough, but it was still a lot less than it had been under the previous Conservative Government, and at times it fell as low as 4%. Of course, any youth unemployment is unacceptable, but comparing what the previous Tory Government and the current Tory Government have done shows the natural progression and where they are going. Their economic policy is failing and hurting. It is clearly not working because the Office for Budget Responsibility has forecast that the Government will borrow an extra £46 billion over the next year. As the Business Secretary said on 15 March:

“Cuts without economic growth will not deal with the deficit.”

The motion before us also refers to the International Monetary Fund’s concerns about the Government’s approach. A few weeks ago I met some young people in Runcorn who were on a training scheme to get jobs in the construction industry, which is massively difficult to get into. They were desperate to get work, but they want the confidence that there will be jobs for them. I regularly meet young people who want to work and get those skills. Only last Sunday I met members of the Halton Youth Parliament in Runcorn, who told me that one of their biggest problems is transport. When they are looking for a job or training or a college place, being able to get there is vital. The Government’s cuts to transport, particularly bus transport, have been very hard for my constituency.

There is of course concern about the banks, which should be doing more. I strongly support our proposal for a £2 billion bankers’ bonus tax, which would fund work for 100,000 jobs and allow every small firm taking on extra workers a one-year break from national insurance contributions. The banks should be doing more to help the unemployed, particularly young people. I have twice raised concerns about bank lending to small businesses with the Chancellor on the Floor of the House, and he is looking again at what more can be done. We shall see about that, but there must be a recognition that not enough is happening and that the policy is failing. He has to do more to help young people who are unemployed. It is important that we make it clear that we must have a growth strategy.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

Will my hon. Friend give way?

[Derek Twigg]

I will not, because I have very little time remaining.

Finally, in my constituency we have done a great deal of work with the local authority and local businesses, with the help of the previous Government, to bring forward important projects, such as the Mersey multi-modal gateway, the new Mersey gateway bridge, the Daresbury science and innovation campus and a number of other important projects. Some of those are supported by the Government, but they were developed under the previous Government, which had a growth policy to encourage jobs in areas of high unemployment that need development and need to see—

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[Lorely Burt (Solihull) (LD)]

I shall be very brief. There is not enough time to cover everything mentioned in the motion, so I will avoid the usual political knockabout in the first part of the motion, which is the Labour narrative about how we got into this economic situation. Those arguments are well rehearsed. What matters is not how we got here, but how we get out. I agree with some of the suggestions the Opposition have made. I have long campaigned for a 5% VAT rate on home renovation materials and have asked the industry to analyse the cost-effectiveness of that proposal.

[Mark Lazarowicz]

Will the hon. Lady give way?

[Lorely Burt]

I will not, if the hon. Gentleman will forgive me.

I agree that we could work up a programme to give national insurance relief to small companies taking on new workers, maybe even in the form of a rebate after the first complete year of employment. I have got lots of other ideas, which I hope colleagues in the Treasury will consider. Again, I agree with the Opposition: we need more incentives to stimulate private business to rev up the engine of growth.

It all boils down to growth, but it must be growth in the private sector, not growth led by creating jobs that do not exist, which is what one could argue the future jobs fund did. The Minister has outlined all the steps we are taking to create jobs and prosperity. The motion says only two things about youth unemployment: that long-term youth unemployment is up, and that we should not have scrapped the future jobs fund. Well, youth unemployment is up, but it grew under Labour by 40%—going from 664,000 unemployed 16 to 24-year-olds in May 1997 to 924,000 in May 2010. According to the latest statistics, that figure is 991,000. I hope that a Labour Member will intervene to explain to me how that equates to a 68% increase because, according to my mathematics, that seems more like 7%.

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[Mark Lazarowicz]

My hon. Friend is right to point out what our young people should be able to expect from the future, but is not the reality that because of what is happening, there is so much despair and fear among young people—fear that they will never get a real job—that it is essential that we get action now to provide jobs, and that we do not just rely on promises and schemes? That is what will give them hope. Otherwise, they will find their fears and despair justified.

[Ian Lavery]

I agree wholeheartedly. The 9.6 people going for every job in my constituency are now being threatened and told that if they do not secure employment, their benefits will be withdrawn. That is hardly a carrot-and-stick approach; it is basically a baseball-bat-over-the-head approach. Instead of encouraging people into employment, we are seeing quite the opposite.

The Labour party has proposed a five-point plan for growth and jobs, and the Government parties would be well advised to scrutinise it. What the Minister said absolutely appalled me: he said that they should not listen to the Labour party. Well, let me give him a message. I am here to represent hundreds and thousands of people unable to attract employment. The employment that is available is low paid. On youth unemployment and jobs, the Government should be listening to everyone from across the parties. People are asking me, and are entitled to ask, whether this is a cynical, political attempt to attack the north-east region and them as individuals, because of a fundamental lack of support for the Government parties.