Oral Answers to Questions

Steve Rotheram Excerpts

Tuesday 21st June 2011 Commons Chamber

[Bill Esterson (Sefton Central) (Lab)]

11. What recent assessment he has made of the effect on the economy of trends in the rate of unemployment.

[Steve Rotheram (Liverpool, Walton) (Lab)]

15. What recent assessment he has made of the effect on the economy of trends in the rate of unemployment.

[The Chief Secretary to the Treasury (Danny Alexander)]

The unemployment rate has fallen recently: in the latest data, it was 7.7%—down from 7.9% on the quarter. The Office for Budget Responsibility assumed at Budget 2011 that the structural rate of unemployment was unchanged from its previous trends at 5.25%. In the medium term, unemployment is expected to fall as the economy recovers, supported by the action taken by the Government, including measures published in the Budget and “The Plan for Growth.”

[Danny Alexander]

If the hon. Gentleman was being fair, he would recognise that youth unemployment was growing substantially under the previous Government as well. The country has faced the problem for many years, which is why in the Budget we announced a £200 million package of support, including work experience placements for young people, skills training, guaranteed interviews and progression to apprenticeships. Including the measures in the Budget and the spending review, we will deliver at least 250,000 more apprenticeships over the next four years, compared with the previous Government’s plans.

[Steve Rotheram]

Since this nightmare coalition came to power, the number of people out of work in my constituency has increased, and that is even before the cuts really start to bite. Is it not a fact that the Chancellor, like many Members on the Government Benches, still believes that unemployment is a price worth paying?

[Danny Alexander]

Certainly not. That is why in Merseyside, we have announced a new enterprise zone that will encompass the Liverpool Waters and Mersey Waters regeneration projects. The regional growth fund has announced several projects in Merseyside, and the Work programme in Merseyside will help to deliver support for people to get off benefits and into work; the second contractor got under way yesterday. I hope the hon. Gentleman agrees that is a serious programme to help people off benefit and into work in Merseyside.