Opportunity at the heart of our vision in local government

For too many young people, the transition from education into employment is becoming harder. Employers face rising costs and are understandably cautious about taking on additional staff. Young people without extensive experience then find themselves trapped in the familiar catch-22: they need experience to get a job, but they need someone to give them a job to gain that experience.

In Watford, Three Rivers and Hertsmere, the Liberal Democrats are trying to do something different to solve this problem whilst simultaneously supporting local economic growth.

That is why we are calling on the Government to establish a pilot “Special Economic Zone” for young people and the creative industries across Watford, Three Rivers and Hertsmere.

The idea is relatively straightforward. Creative-sector businesses taking on a new apprentice would be exempt from employer National Insurance contributions for that employee.

It would give businesses a direct financial incentive to create genuinely new opportunities for young people, while supporting a sector with enormous potential for our local economy.

Fundamentally, this proposal is about giving young people a chance by removing the financial disincentives that Labour have put in place through successive employment reforms.

When we talk about young people who are not in education, employment or training, it is very easy for discussions to become dominated by statistics and acronyms such as “NEET”. Behind those statistics, however, are real people who want the opportunity to build their independence, develop their skills and start their careers.

Yet because entry level jobs in every sector are becoming increasingly difficult to obtain, young people remain locked out of many sectors. The evidence on this is clear, the longer somebody remains outside employment, the harder that first step can become.

At the same time, we need to recognise the pressures facing employers. A small or growing business might want to give an 18 or 19-year-old their first opportunity but ultimately decide that the costs and risks involved are simply too high.

Our proposal would change that calculation.

Rather than asking businesses simply to “do more”, we would remove the hidden costs of employment. This would give employers a greater impetus to take a punt on a young person who may not have the perfect CV but who has enthusiasm, potential and a willingness to learn.

Why the creative industries?

We are attempting this in South West Hertfordshire because we have a strength in our creative industries in and around our area.

Yet having successful industries on your doorstep does not automatically mean local young people can access the opportunities they create.

Matt Sanders, our Liberal Democrat parliamentary candidate for South West Herts, has highlighted exactly this problem. Young people he speaks to are excited by their future but also anxious about how they will actually secure their first job.

A successful local economy should connect those two things: thriving businesses and talented local young people looking for their first opportunity.

That means thinking much more seriously about apprenticeships and other routes into industries that have traditionally been difficult to break into.

A pilot, not a blank cheque

Whenever politicians propose tax incentives, there is quite rightly a question about how they will be paid for.

That is why our proposal should be a targeted pilot focused on new apprenticeships, rather than a general tax reduction for existing jobs.

The Government would forgo employer National Insurance contributions on those new positions, but those apprentices would be earning, paying taxes and developing valuable employment experience. Crucially because these would be new jobs the government is not actually losing revenue.

There should also be savings elsewhere. A successful scheme should mean fewer young people requiring state support, lower levels of long-term unemployment and more economically active residents contributing to the local economy.

Most importantly, a pilot allows us to find out what actually works.

If the policy creates hundreds of additional opportunities and helps young people establish careers, we will have evidence for extending it. If parts of the scheme do not work as intended, we can change them.

There is also the reality that the new Prime Minister wants to move towards a regionalised economy model. This aligns with that aim without taking away from other regions who need support whilst simultaneously empowering local areas to support growth industries in their regions.

We have written to the relevant government ministers, now all they need to do is allow local government to innovate.

 

* Callum Robertson is a teacher and member of the Federal Board. He is a Watford Borough Councillor.

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One Comment

  • “ When we talk about young people who are not in education, employment or training, it is very easy for discussions to become dominated by statistics and acronyms such as “NEET”. Behind those statistics, however, are real people who want the opportunity to build their independence, develop their skills and start their careers”

    I work directly with young people who appear likely to become NEET. Unfortunately, I would say that the majority end up as NEET because they do not wish to engage in developing their skills or starting work. The biggest indicator that young people may become NEET is them having poor school attendance. Some of pupils with poor attendance just hate school and want to start work (usually hands-on like construction or the trades) – these can be diverted into work experience routes before they officially leave school and go straight to employment thereafter. However, the real challenge are those with poor attendance who refuse to engage in anything offered to them, including Work Experience opportunities. Sometimes this is due to them being ‘gamers’ whose lives and sleeping patterns all fit round this priority – they are extremely difficult to prevent becoming NEET. Others just don’t want to work – they believe the government will provide what they need. Interestingly, many of those I work with live in homes with two working parents so it is not just those from workless families who go down this road.

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