New jobs must be prioritised

Given that the third Monday of the new year is traditionally the gloomiest of 2012, this confluence of events, prior to the latest unemployment figures being published tomorrow, increases – still further – the likelihood of a double-dip recession.

The one glimmer of hope is that the Government does not appear bereft of ideas. George Osborne was in China promoting a new economic alliance between London and the East that could have far-reaching benefits, while Nick Clegg was advocated increased employee share ownership based on the John Lewis model.

There is merit to the Deputy Prime Minister’s idea. John Lewis is so successful, and respected, because its staff are at its vanguard and benefit from profits. The consequence here, and elsewhere, is higher staff morale – a priceless virtue in these challenging times.

The downside is that it is just an idea at this stage – Mr Clegg intends to hold a summit on the notion later this year, negating the likelihood of any tax incentives in the forthcoming Budget. It is also unclear whether workers actually have sufficient disposable income to buy a stake in their workplace.

In the meantime, the Government’s immediate priority must be a redoubling of efforts to stimulate the creation of jobs in those areas, like Yorkshire, which have the misfortune, yet again, to be on the wrong side of the North-South divide.

And, given this, perhaps Mr Clegg and his Lib Dem colleagues in the Cabinet need to consider whether their ideological opposition to a lowering of the 50p tax rate is actually holding back Britain’s job prospects. While the party’s commitment to the poor is laudable, and has certainly forced the Conservatives to think again on many social policies, it could become counter-productive if high tax rates jeopardise investment opportunities. As such, nothing should be ruled out.