Reaction to the Budget
Posted on 25 March 2011
By Kevin Maton, Network Director, SEWM CIC
In the Chancellor’s Budget, the announcement of lower growth forecasts shows we have real problem as an economy. The West Midlands Region, with historic low levels of productivity and skills, is likely to be one of the areas hardest hit by the current economic slowdown. We still await the results of applications to the Regional Growth Fund, set up by the Government to assist areas hardest hit by reductions in public sector jobs. But the successful applications are unlikely to generate the types of jobs and in sufficient numbers to compensate for the reductions in public service jobs in the West Midlands. What will be needed is a concerted effort at training and skills development, especially for young people.
At a Conference held in Birmingham today (25th March) about Public Service Commissioning, Will Nixon, CEO of PM Training gave an example of how a social enterpise like PM can create real impact on the lives of unemployed young people. But much more investment to suppoort these types of initiatives will be needed if we are not to create a generation of young people unable to get jobs and experience of work.
Other proposals in the budget included a reducing costs of regulation but these must NOT be in those areas which identify a ‘good employer’ like many social enterprises - those that abide by equality legislation for instance. People with disabilities, women & older people must not lose out as a result of the Government’s rush to “make it easier for employers “.
I was disappointed that there was nothing to boost the social housing sector but instead there is Government subsidy for developers and land owners in the proposed Enterprise Zones. The EZ policy failed to deliver in the 1980s and is an idea that does not address the real needs of small businesses. Investing in Housing Association social house building would meet increasing needs for low cost housing and boost jobs.