During his speech at the Conservative Party conference on Monday, Chancellor Rishi Sunak commits £500m to renew job support scheme. In a promise to “double down” on helping the jobs market after Covid, he has extended several programmes launched during the pandemic.
The chancellor also promises to reshape the economy around scientific innovation and technology.
The move comes while the government face pressure over living standards. People may see their incomes stretched this autumn as energy bills and food prices rise. Cuts to universal credit benefits have also prompted warnings.
Amid continuing supply chain problems across a number of sectors, on Monday, the military will start driving fuel to petrol stations.
Doing whatever it takes
This speech is Mr Sunak’s first in-person conference to Tory members in his role as chancellor, a position he has held for just over 18 months. His appointment came only weeks before the first Covid lockdown. This meant he started by having to sign off on an unprecedented amount of public spend almost straight away. However, he maintains this as a necessary reaction to the crisis.
Ahead of the address, Mr Sunak praises the recovery of the economy in the UK, but warns the “job is not done yet”. When the pandemic began, he “made a promise to do whatever it takes”, and says he is now “ready to double down on that promise” as we emerge.
The speech is on the second day of the conference, Business Day, when the party aims to boost ties with industry by showcasing its commercial credentials. Mr Sunak will have to emphasise Conservative credentials, such as desires to cut taxes and caution over spend of taxpayer’s money.
However, the reality is that National Insurance and Corporation Tax are due to increase while he is power. At the same time, energy prices are rising, shops are experiencing supply issues, and there are lengthy queues for petrol.
The chancellor will also make a promise to turn the UK into “the most exciting place on the planet” with improved skills and better infrastructure.
“Period of adjustment”
The event this year comes at a time when we are dealing with supply chain issues, and ministers and the haulage industry are at a stand-off over foreign drivers.
The sector is suffering from an estimated 100,000 shortage of HGV drivers because of Brexit, Covid and other factors. It is now calling for extra temporary visas to fill the gap. While ministers are granting 5,000 temporary visas, they are resisting any increases to this number. They say that immigration is to blame for previously pushing down pay and working conditions.
Boris Johnson says the UK is in a much needed “period of adjustment” after Brexit. Immigration from the EU has decreased investment from businesses in equipment and staff, he adds.
Mr Johnson refuses to rule out the possibility of raising taxes again, but will “avoid it” if he can, as it is not something he wants to do.
Scheme extensions
The Kickstart Scheme will extend by three months to March 2022. Launched in September last year, this programme subsidises eligible jobs for young people on universal credit. It had an allocation of £2bn funding to help create 250,000 jobs by the end of 2021. However, according to the latest figures, only 76,900 youngsters have actually started in the 196,300 Kickstart roles available.
The chancellor will also announce the extension of the JETS scheme until September 2022. This helps people in long-term unemployment who are on universal credit.
Another scheme that pays employers £3,000 for each apprentice they hire will also extend by four months until the end of January.
In addition, the government pledge to help people more with finding work as they come off the furlough scheme. This scheme ended last week, after paying 11.6 million workers wages during the coronavirus pandemic.
Confirmation of the full spend details are expected at the Spending Review on 27 October. But funding for the various extensions will come from the £500m.
Meanwhile, Labour say that the government’s plan to support jobs is “struggling” and has “failed to hit its original targets”. They believe that extending deadlines will not do anything to compensate for the tax increases, universal credit cuts and cost of living crisis.
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