Budget should tackle youth unemployment, say business leaders

24 Feb 14
Next month’s Budget must tackle youth unemployment to avoid the creation of a ‘lost generation’ of workers, the British Chambers of Commerce has said.

By Richard Johnstone | 24 February 2014

Next month’s Budget must tackle youth unemployment to avoid the creation of a ‘lost generation’ of workers, the British Chambers of Commerce has said.

In its submission to the Treasury ahead of Chancellor George Osborne’s statement on March 19, the BCC said employers were concerned about the readiness of young people for work. A ‘deficient’ education, training and skills system had led to an increase in youth unemployment, it said.

Among recommendations put forward to government today is the call for a future workforce grant, which would provide employers with a £1,000 payment if they hire a long-term unemployed young person or create a new apprenticeship.

In addition, the BCC said the current £1,500 Apprenticeships Grant for Employers should be extended for the next two financial years. The submission also stated that tax relief for investment in firms run by people under the age of 24 should be increased from 30% to 50%.

BCC director general John Longworth highlighted that the jobless rate among young people was nearly three times the level in the population as a whole.

Businesses want to hire young people, he said, but many cannot afford to take the risk when other, more qualified, applicants are coming forward for vacancies.

‘If the chancellor wants to avoid a lost generation among today’s 16-to-24 year-olds, he must use the spring Budget to help businesses take on and train up young people, whether they are going straight into jobs or into apprenticeships,’ Longworth said.

‘He should also extend tax incentives for individuals with deep pockets who invest in businesses started up by school and college leavers and graduates.

‘The chancellor rightly wants to boost business investment in this year’s Budget and we support measures to do this, but not just for plant and machinery. We know there are many serious structural issues that need to be addressed to create a truly great UK economy, but not all of them can be resolved at this point in the political and economic cycle.’

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