Chloe SmithMP for Norwich North
Chloe SmithJobs and employment were at the heart of the Chancellor’s Budget this week. I have always worked in Parliament and locally to back jobs, and I know how important this Budget was for employees and businesses.
The Budget offered further reassurance that the Government will continue to back businesses, families and workers through our recovery from Coronavirus.
One of the tragedies caused by the pandemic is that, sadly, since March, 700,000 people have lost their jobs and the economy has shrunk by 10 per cent–the largest fall on record.
But, as a result of the Government’s interventions, unemployment is now estimated to peak at far lower levels than previously expected, and the economy is now forecast to recover faster than previously thought as well.
The Budget protects the jobs and livelihoods of people in Norwich North by:
Two further grants for the self-employed–and bringing in 19/20 starters
Restart grants of up to £18,000 to get our retail, hospitality, leisure and personal care businesses going again
Business rates holiday extended for 3 months, before tapering for another 9
Extending the boost to Universal Credit and Working Tax Credits by six months
More money for apprenticeships and traineeships
Over this year and next, the whole country will benefit from the £407 billion of support put in place. Together, that is an unprecedented package of measures to protect both lives and livelihoods through this incredibly challenging period.
Here in Norwich North, the most recent statistics show that 15% of workers had been placed on furlough in January, protecting the incomes of around 6,500 people. Everyone on furlough now has further certainty, as the scheme will remain in place until September.
All furloughed employees will continue to receive 80 per cent of wages for hours not worked, but as businesses reopen, they will be asked to contribute 10 per cent of wages in July, and 20 per cent in August and September.
The furlough scheme remains among the most generous schemes of its kind anywhere in the world.
The self-employed will also get a fourth grant covering the period February to April, worth 80 per cent of people’s average monthly revenues.
From May, a fifth grant will be available which is more targeted towards those most affected by the pandemic: people whose revenues have fallen by more than 30 per cent will receive the 80 per cent grant, while those whose profits have fallen by less than 30 per cent will receive a 30 per cent grant.
The more than 600,000 people, including those who became self-employed last year, and filed their 19/20 tax return by 2 March, will now be eligible for both grants.
I have written to the Chancellor many times over the last year, to ensure the voices and views of self-employed people here in Norwich North were heard. I welcome the news that many more people will now benefit from the grant.
The £20 uplift to Universal Credit will continue to support families. Additionally, the Chancellor confirmed the rates for Child Benefit will rise with inflation, meaning more money in people’s pockets. In line with the increase to Universal Credit, anyone who claims Working Tax Credits will get a one-off payment worth £500, supporting people on lower pay in our community.
I know from my work with young people in Norwich that they often bear the the brunt of any economic turmoil and they are at particular risk at this time. Employees aged under 25 were about two and a half times as likely to work in a sector that is now shut down as other employees.
The Government knows that too, and this week the Chancellor took further actions to support them.
The Government had already launched the Restart scheme to help hundreds of thousands of long term unemployed; doubled the number of Work Coaches; introduced the Lifetime Skills Guarantee to fund Level 3 Qualifications for all adults; and launched the Kickstart scheme to help 250,000 young people into work.
Now, the Chancellor has gone further by doubling the incentive payment to small businesses to take on apprentices of any age to £3,000, alongside £126 million to triple the number of traineeships next year.
I know firsthand what a difference this support will make to the lives of young people. My local campaign, Norwich for Jobs, has changed lives since 2013 by helping people aged 16 to 24 get into work. The project offers support to young people looking for work, employers looking to recruit and organisations that work with young people.
The landmark Kickstart Scheme – a £2 billion fund - is already supporting the creation of new, high-quality, Government-subsidised jobs for young people at risk of long-term unemployment.
There will still be a lot of hard work ahead, and the Chancellor was honest about this.
This investment is vital, but the chancellor was right to say that we must balance support for the economy with action needed to begin to fix our public finances.
The Income Tax Personal Allowance has doubled over the last decade to £12,500, standing now as the highest basic personal tax allowance of any G20 country and meaning a typical basic rate taxpayer now pays £1,200 less tax than in 2010.
Next year, it will rise in line with inflation to £12,570 – but it will stay at this higher level until April 2026. Similarly, the Higher Rate will also increase next year to £50,270 until April 2026. This does remove the incremental benefit had thresholds continued to increase with inflation. It is important to say that:
This is a progressive measure: the richest households will contribute the most
This only starts in 2022 and even then only raises revenue slowly over time, supporting our recovery
*N.B: ONS January furlough statistics are provisional and may be adjusted in the future
The Conservative manifesto I stood on promised opportunity for all and this is what we are delivering. The support announced in the Budget will help workers and families here in Norwich North, by supporting jobs and incomes. The Government is taking unprecedented steps to ensure we bounce back from coronavirus and secure the UK’s economic recovery.
Chloe recently published an article entitled A Fair Recovery for Young and Old?, drawing experience helping young people in Norwich: You can read this article here: https://onenationconservatives.files.wordpress.com/2020/08/upwardlymobile.pdf
To find out how to get involved with the Norwich for Jobs project as an employer or a young person looking for work please e-mail info@norwichforjobs.org.uk.