31st March 2014
The Chancellor George Osborne has declared that the government is committed to fight for full employment in Britain and ensuring jobs are central to its economic plan writes Philip Scott.
During his speech at Tilbury Port this morning where he outlined upcoming tax and benefit changes, Osborne said he would “keep rewarding and supporting hardworking people who have jobs”.
He added: “That’s the approach that leads to the fullest employment. Jobs matter – mass unemployment is never a price worth paying.”
The Chancellor declared that Britain is now creating jobs faster than at any point in its recent history and at a faster rate than almost any other country in the world.
However he acknowledged this was “not enough,” noting that youth unemployment in the country still remains a serious problem.
He said: “We need more jobs to be created in Britain. And we have an ambitious new goal. We want Britain to be the best place in the world for you to find a job.”
In a bid to boost employment the government is attempting to back businesses to help them create more jobs.
From tomorrow the rate of tax many businesses pay will decrease from 23% to 21% and the amount these groups can invest with no upfront tax doubles to £500,000.
Osborne said: “Tomorrow’s increase to the annual investment allowance helps small business especially. It helps businesses to expand and install new machines, buy more vans, build a new factory plant – and when that happens, they take on more staff.”
He added: “Whether you are working or looking for work; whether you’re starting your own business or hiring someone new – these changes will help. They are part of our long-term plan to build a more resilient economy and create jobs.
“This week your business can keep more of the money it makes, so you can invest, expand and create new jobs.”
In addition, for small high street shops, cafes and pubs the government is taking £1,000 off their rate bills, capping the rates of every business and taking a third of a million of the smallest firms out of rates altogether.
He said: “If our businesses can keep of the more money they’ve earned because the rates are lower and the taxes are lower, then they can hire more people and invest in the future.”
From next Sunday, workers will see their tax free allowance, what they earn before they pay any income tax, rise to £10,000.
Looking to the welfare system, Osborne, added that it is no good creating jobs – if we are also paying people to stay on welfare.
Next Monday benefits will only go up by 1%. He added: “When I took this job, some people were getting huge payouts – receiving £50,000, £60,000 even up to £100,000 in benefits. More than most people could get by working.
“That was outrageous. So we’ve capped benefits, so that a family out of work can’t get more in benefits than the average working family. We’re now capping the overall welfare bill, so we control that. That came into force last week. And we are bringing in a new Universal Credit to make sure work always pays.”
The government is making half of all people on unemployment benefits sign on every week – and people who stay on benefits for a long time will have to go to the job centre every day.
“To claim benefits people will also have to show they can speak English, or go on a course to learn how. It is ridiculous that people who didn’t speak English, and weren’t trying to learn it, could sit on out of work benefits in this country. If people can’t speak English it is hard to get a job. Starting this week it will be even harder to get benefits if they’re not even attempting to learn it,” he added