Patrick Nolan

This budget penalises employment

Supporting jobs and small businesses – “the backbone of future economic growth”, in Alistair Darling’s words – was seen as a priority in today’s Budget. In his statement the Chancellor highlighted the following measures:

•         Extending the young person’s guarantee for one year after March 2011 (providing a job, training or work experience for young people who cannot find work).

•         Extending the time to pay scheme, which allows businesses to spread tax payments over a timetable they can afford, for the whole of the next Parliament.

•         Cutting the business rates facing small businesses for one year from October.

These are temporary measures which each deal with relatively minor reasons for unemployment. If the Chancellor was serious about creating jobs in the private sector, he would have found permanent ways to make it easier and less expensive for businesses to take on staff.

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