According to business leaders in the region, Central Government
needs to follow local authorities' lead and take urgent action to
tackle unemployment.
Speaking at a debate hosted by Midlands Region of The Chartered
Institute of Public Finance and Accountancy (CIPFA), business
commentators observed that although local authorities are doing
what they can to prioritise unemployment reduction strategies
during austere times, more action is needed from Central Government
to support their ideas.
In particular, the regeneration of New Street Station was
highlighted as an example of a local authority using planned
infrastructure investment to tackle urgent local issues, such as
unemployment. In this case, the project will create 1,000 new jobs,
25% of which will be taken by long term unemployed people. The
retail proposition led by John Lewis will also create 1,000 jobs
and will also focus on a target of 25% being taken by people who
have been unemployed for some time.
Professor David Bailey of Coventry University Business School,
said:
"The latest unemployment figures confirm the need for urgent
action and the Government needs to get creative about finding ways
to tackle this.
"Much has been said by the Government about not borrowing more
to stimulate the economy but in reality this is still an option and
positive action to tackle the issue of unemployment is possible.
For example, a substantial cut in national insurance contributions
for low paid and younger workers, which could be withdrawn
gradually as and when the economy gets going and unemployment
falls. This would have minimal impact on the structural deficit and
the markets, but would provide a short-term boost in terms of
demand for labour and the incomes of the low paid."
Michael Kitts, partner and Midlands public sector leader at PwC,
added:
"In general, and contrary to some opinion, local authorities in
the region are operating efficiently and are acutely aware of the
risks posed by rising unemployment and are prepared to take action
to address them. However, more support from the Government in this
area is vital if we are to avoid the region dipping to a point
which would make it difficult to lead a recovery.
"Among the strategies being adopted by local authorities is a
willingness to innovate and take bold steps to transform how the
public sector operates with others in the region. In particular,
authorities have noted a significant change in regional demand;
pointing to the question "what can we do to support the city or
region?"
"However, there has been some concern about the role of councils
as 'commissioning bodies' and whether this will dilute their
impact. This term is often mistaken for a 'let's outsource
everything' agenda. This does not need to be the case - often
talented, strategic thinkers in local authorities can be overly
focused on traditional service delivery, taking them away from
securing broader outcomes such as improving the city as a place to
live. A greater focus on securing these outcomes by working with
other local partners has the potential to improve the well-being of
local communities and save more money than could be achieved by
simply focussing on a potentially downward spiral of doing the same
with less. This is about doing different things, not about doing
the same things differently."