My Lords, the Government have responded to the challenges of Covid-19 through unprecedented support for business and workers across the country. At the summer economic update, the Chancellor announced the Government’s plan to support jobs in every region through upgrades to local infrastructure, boosting skills and new employment support schemes.
I am grateful to my noble friend for that response, but what will the Government do to help the north-west of England to support it through the economic impacts of Covid-19?
Investing in the regions is a key part of the Government’s levelling-up agenda, and my noble friend will be pleased to know that the plan for jobs announced in the summer confirmed over £300 million for priority local infrastructure projects in the north-west. I am also pleased to tell him that more than 7 million meals were claimed as part of the Government’s Eat Out to Help Out scheme in the region.
My Lords, in 2019, the social mobility unit called for a new joined-up approach from government to overcome failures in delivery of the social mobility programme. How will the Government avoid such failures with the levelling-up agenda at the difficult time of Covid? Will the task force insist on joined-up approaches which consult local communities about necessary action?
My Lords, I am afraid I do not have details of the social mobility unit’s work before me, but the Government are doing a huge amount on this agenda. I point to the introduction of the kickstart scheme this week, which is particularly focused on young people at risk of long-term unemployment as a consequence of this pandemic.
Poor areas exist not because they have large numbers of poor people but because they have limited opportunities for people to skill up and get good paid jobs, so how can levelling-up become a reality when a report out this week shows that the UK has slipped from first to fourth place of OECD countries on the proportion of funds it spends on education and training?
The Government are doing a huge amount to respond to the challenge of education and training and provide opportunities for young people. As I just mentioned, there is the kickstart scheme, where those aged 16 to 24 will have the national living wage paid by the Government for job placements lasting up to six months.
Lord Mackay of Clashfern (Con) [V]
My Lords, in some areas where employment was low, the pandemic has produced greater than average damage. What steps are being taken to mitigate this further damage?
In addition to the Coronavirus Job Retention Scheme, which has been running for more than six months, we are providing more support to businesses to take on new trainees, with more than £111 million to triple the scale of traineeships available.
My Lords, evidence from the Midlands Engine Observatory highlights the barriers to growth in the Midlands economy, leading to a gross value-added gap with the rest of the UK of around £76 billion. Will the Government confirm their commitment to back the work of the Midlands Engine partnership and support its calls for targeted investment to deliver on its policy of levelling up for almost 11 million people in the region?
My Lords, every place in the UK has a role to play in driving growth and the Government absolutely support the work of the Midlands Engine partnership. I am pleased to say that 30 places in the Midlands Engine region have been shortlisted for the next stage of the £3.6 billion towns fund to develop towns deals, and at Budget 2020 we announced £20 million development funding for the Midlands rail hub.
My Lords, earlier this year, the IFS Deaton review warned that the Covid economic shock would highlight and potentially worsen existing inequalities, with people on lower incomes thought most likely to work in sectors impacted by lockdown and least likely to be able to work from home. Does the Minister believe enough is being done to prevent a widening of inequality, and how does she envisage the Government delivering on their levelling-up agenda in those circumstances?
My Lords, the Government are completely committed to avoiding any widening of inequality during this pandemic. That is why, during the summer, we announced our plan for jobs. It contains three elements: protecting jobs, such as by cutting VAT for the tourism and hospitality sectors, which have been particularly affected, until January next year; creating new jobs, including through the £2 billion new green homes grant, which will create new job opportunities; and supporting jobs through measures such as the kickstart scheme.