Government urged to reverse National Insurance hike and
tackle youth unemployment
The London Assembly has today
called on the Government to reverse the National Insurance
increase and urgently produce a plan to tackle rising youth
unemployment.
The Assembly noted that unemployment has risen
to 5.2 per cent, the highest level in five years, and linked this
to the decision to raise National Insurance, which increased
employment costs at a time of weak growth.
It also highlighted that youth unemployment has climbed to 16.1
per cent, with young people and students disproportionately
affected as employers cut back on part-time and entry-level
roles, particularly across London.
AM,
who proposed the motion, said:
“Unemployment is rising and youth unemployment especially at
a time when Londoners are already struggling - and this has been
caused by the economic policies pursued by the Government at
successive budgets.
“I hope that the Government recognises the impact that their
national insurance hike is having, and reverses it at the first
opportunity - and that the Mayor of London listens to the
Assembly's decision today and lobbies for London.”
The full text of the motion is:
“This Assembly deeply regrets the current state of the UK economy
following the consequences of two deeply damaging budgets
delivered by the Chancellor (The Rt Hon MP).
This Assembly notes that unemployment in the UK has risen to 5.2
per cent, its highest level in five years. This increase is
clearly linked to the Government's decision to impose a Jobs Tax,
increasing the cost of employment for businesses at a time of
weak growth.
This Assembly further notes that youth unemployment has risen
sharply to 16.1 per cent, with young people and students
disproportionately affected as employers cut back on part-time
and
entry-level roles, and that the National Insurance hike has
particularly undermined flexible, part-time and student
employment across London's economy.
This Assembly recognises that the combined effect of rising
unemployment, persistently high inflation, and economic
stagnation has left businesses, families, and communities across
London worse off, despite repeated promises from the Government
that Londoners would feel better off.
This Assembly therefore calls on the Government
to:
- Reverse the National Insurance hike;
- Urgently produce a plan to tackle rapidly growing youth
unemployment and get more young people into work.
This Assembly also calls on the Mayor to lobby Government to this
effect.”
Notes to editors:
- The Motion was agreed by 14 for and
9 against.
