Opposition Day— [Un-allotted Day]: Youth Unemployment
I beg to move,
That this House believes that the Government’s policies of cutting spending and raising taxes too far and too fast have resulted in the UK economy flat-lining for 12 months, well before the recent Eurozone crisis; notes that unemployment has reached a 17-year high and youth unemployment has hit a record level of 991,000; further notes that slower growth and higher unemployment makes it harder to get the deficit down and that the Office for Budget Responsibility forecasts £46 billion more borrowing than the Government planned; further believes that with long-term youth unemployment up by 64 per cent. since January 2011 it was a mistake to abolish the Future Jobs Fund and urgent action is now required to stop a generation of young people being lost to worklessness; agrees with the IMF’s warning that ‘consolidating too quickly will hurt the recovery and worsen job prospects’ and that the Government should have ‘a heightened readiness to respond, particularly if it looks like the economy is headed for a prolonged period of weak growth and high unemployment’; and calls on the Government to adopt the Opposition’s five point plan for jobs which includes using funds raised from a tax on bank bonuses to guarantee a job for 100,000 young people and build 25,000 affordable homes, bringing forward long-term investment projects, temporarily reversing January’s VAT rise, a one-year cut in VAT to five per cent. on home improvements and a one-year national insurance tax break for every small firm which takes on extra workers.