THE Employment Minister has said he is not prepared to “just throw money” at the North East to help find jobs for our 153,000 unemployed despite admitting “it faces the greatest challenge”.
In a robust defence of the Government’s record here, Chris Grayling warned the region’s Labour politicians their record is one of failure.
Speaking to The Journal as a further 150 Lloyds Newcastle banking job losses were announced, the minister said 13 years of Labour in Downing Street had seen cash pumped into the North East with no improvement.
But Mr Grayling said the Department for Work and Pensions’ approach to long-term unemployment, in which firms are paid based on how much work they find for problem families, would be more successful.
Since the coalition began its programme of slashing public sector spending, the North East has seen unemployment rise to the point that it now has UK’s highest rate – 12%.
Those spending cuts have seen thousands of workers pushed in to unemployment while the private sector struggles to create the jobs needed to reverse the trend.
On the morning of Mr Grayling’s visit yesterday, Gateshead Council’s Labour cabinet heard claims the money available now to help find work was “a drop in the ocean when compared to what was taken from us” as part of Government grant reductions.
Council leader Mick Henry said the changes set to be introduced to benefits and employment support were “scary in the extreme”, adding “the implications of the welfare reforms going through are frightening”.
Asked about these claims and the need for dedicated North East jobs support, Mr Grayling said the region was his biggest concern.
He said: “For this programme we are introducing we will pay out based on results. The lesson of the last 20 years in the North East is throwing money at its problems has not solved any of those problems.”
He added: “We are acting to help. We can see the North East is top of the list in the Government’s regional growth fund, it is the smallest region, but we are helping to create private sector jobs. And we are doing that in a targeted way because this is a region that is a priority for us.
“It is one we recognise faces the greatest challenges, but there are some positives here. We want to see more private sector growth here.”
Asked if he thought the region would still be suffering from 12% unemployment in 2015 when the next general election is to be held, he said: “I’m not in the habit of making economic forecasts, but I certainly hope it will be down by then. That is the plan.”
The minister made the comments while visiting the Wise Group in Newcastle. The firm helps find work for families in which there is a long history of unemployment.
Across the region, councils have been given figures on the number of families which will be targeted to ensure they cease being a drain on public resources.
Coun Henry said the wider Government reforms would undermine previous efforts put into building up the North East.
Page 2 - Grayling: North-East is at top of priority list >>
