24th April 2009
By Vivienne Russell
Town hall leaders have been ‘hugely encouraged’ by the announcement of funding to help them create 100,000 new jobs – but have called for the extra money to be passed on quickly.
Under the measures, which were included in the Budget, councils and their partners will be able to bid for a share of more than £1bn to support local job creation programmes in ‘socially useful’ areas.
The announcement formed part of a package of measures to support long-term unemployed people. A further 50,000 jobs are to be created in areas of dense unemployment, and a further 50,000 traineeships for young people working in the care sector will be funded.
Local Government Secretary Hazel Blears said: ‘It’s right that councils are centre-stage in these efforts. The measures announced today will ensure councils are well placed to lead and support their communities during these tough economic times and beyond.’
Local government leaders and advocates welcomed what they saw as validation of their role as drivers of their local economies.
Local Government Association chair Margaret Eaton said: ‘Councils have thousands of small-scale projects on the stocks and are ready to go. The chancellor’s money will create the most number of jobs and have the most significant effect if it is channelled through local authorities on projects that can get started immediately.’
Andy Sawford, chief executive of the Local Government Information Unit, told Public Finance: ‘Money has to get to councils very quickly.’ He said there was ‘frustration’ at money being passed down through quangos and agencies before it got to councils. ‘We can’t afford to take that approach.’
As well as the job creation announcement, Darling promised a guaranteed job, work placement or skills training for everyone aged between 16 and 24 who has been claiming Jobseekers Allowance for more than a year.
A further £1.7bn has been set aside to help Jobcentre Plus to handle increased numbers of claimants.
Mark Serwotka, general secretary of the Public and Commercial Services union, which represents jobcentre workers, said the announcement was a ‘welcome step in the right direction’.
He added: ‘We shouldn’t forget that over 500 job centres and benefit offices have closed over the past five years… also that the extra staff already promised for jobcentres will only take staffing levels to where they were in 2005.’
