Token measures

VINCE Cable’s employment law reforms are driven by the best of intentions. He wants employers to have more flexibility, less red-tape and a greater role for arbitrators in settling grievances. The Business Secretary’s challenge is selling this notion when the unions are claiming that the changes diminish the rights of workers at a time when so many people are fearful about their job prospects.

It should also be noted that these changes are only expected to save employers £40m a year – a minute sum in comparision to the Bank of England’s continuing deliberations about whether to pump even more billions into the economy. And while future decisions have been put on hold, the lack of economic confidence formed the backdrop to yesterday’s partisan exchanges at Prime Minister’s Questions that focussed on the relentless rise in youth unemployment.

The theme was familiar. Labour leader Ed Miliband claimed that the Government’s strategy was failing the one million plus young people who are out of work, while David Cameron retorted by pointing out how this trend started on Labour’s watch.

That both men seemed reluctant to venture into the debate about employment law was also indicative of the lack of clearcut leadership in this country. With neither politician appearing to command total confidence in their respective party’s stance, it was more beneficial, from their perspective, to vilify the record of their opponent.

However this will not suffice. Next week’s Pre-Budget Report will have to produce a strategy for growth and Labour will have to deliver a creditable response. For the public’s position is clear: taxpayers just what a plan that brings together the most innovative ideas to create a new wave of jobs and some economic stability.