North's businesses urged to 'step up and offer opportunities' under Rishi Sunak's 'plan for jobs'

Chancellor Rishi Sunak put the focus on job opportunities for the young in today’s summer statement.

The numbers of unemployed 16 to 24-year-olds in the North are some of the highest in the country, with the worst affected areas being the North-East, followed by Yorkshire and the Humber.

Today, Mr Sunak announced a £2bn scheme of taxpayer-funded work placements for 16 to 24-year-olds on Universal Credit and at risk of long-term unemployment, a £111m programme of unpaid traineeships combining work experience with training, and a programme for firms to be given £2,000 for each new apprentice they hire under the age of 25 and a new bonus of £1,500 for apprentices over that age.

Henri Murison, the director of the Northern Powerhouse Partnership - a lobbying group representing northern businesses - said: “We need to see businesses in the Northern Powerhouse step up and offer opportunities through the Kickstart Scheme as we have greater demand here.

“We as a partnership will ourselves commit to do this, because we need to see the young unemployed getting experience in leading capabilities like energy, health innovation, advanced manufacturing and digital as well as creative industries that have secure longer-term prospects.”

Nick Garthwaite, the managing director of the Bradford-based chemicals company, Christeyns, and the chairman of the West and North Yorkshire Chamber of Commerce said support for young people was a key part of the chamber’s suggestions to the Treasury.

“Plans for the kickstart programme to provide funded work experience are welcome,” he said.

“So too is the extra support for employers to take on apprentices. We cannot afford to lose a generation of young people to the crisis.

“However, we felt the Chancellor could have gone further by allowing apprentices to undertake much of the off-the-job training upfront to give employers more time to recover and ensure apprentices are better prepared to enter the workplace.

“We also still need to see greater flexibility in the apprenticeship levy so that employers can help their people get the skills they need to succeed in an evolving workplace.”

The Government has also outlined a plan to provide additional help for longer-term unemployed, with details set to be announced later.

Ministers said that in addition to the policies revealed in the Chancellor’s “plan for jobs” today, the Government intends to support those who are out of work for a longer period with a new, large-scale employment support offering.

Other employment measures announced in the package include the expansion of support to young jobseekers, with £895m to enhance work-search support by doubling the number of work coaches in Jobcentres before the end of the financial year across Britain.

And the Government said it will also provide up to £95m this year to expand the scope of the Work and Health Programme, to introduce additional voluntary support in the autumn for those on benefits who have been unemployed for more than three months.

An online service will be introduced to help those who have been unemployed for less than three months.

Support will also be offered to claimants such as travel expenses for attending interviews.

Mr Sunak told MPs that the Department for Work and Pensions will be given an extra £1bn to support millions of people back into work.

Speaking in the House of Commons today, Mr Sunak told MPs that the Government will do “all we can” to keep people in work. He said his plan would help protect livelihoods after the economy contracted by 25 per cent in just two months.

He said: “We have taken decisive action to protect our economy.

“But people are anxious about losing their jobs, about unemployment rising. We’re not just going to accept this.

“People need to know we will do all we can to give everyone the opportunity of good and secure work.

“People need to know that although hardship lies ahead, no-one will be left without hope.”

The Chancellor’s statement came after warnings from the Organisation for Economic Co-operation and Development (OECD) that the UK’s unemployment rate could soar to 14.8 per cent, with job losses comparable to the 1930s. Mr Sunak said the Office for Budget Responsibility and Bank of England are both projecting “significant job losses”.