David Cameron: We will ensure fairness and economic growth across the UK

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(London) ·New principle to ensure decisions by Scottish Government don’t harm rest of UK

·New ambition to create three out of five new jobs outside London and South East

David Cameron will say today that the next Conservative government will create a new principle to ensure decisions by the Scottish government do not have an unforeseen detrimental effect in the rest of the UK.

In a speech in the North West today, the Prime Minister will say the next Conservative government will conduct an annual review of the impact of devolved policies on other parts of the country. It will examine whether policies in areas like taxation are having an adverse impact on other areas in the UK.

Mr Cameron will make clear the “Carlisle Principle” – named to reflect the sort of communities in the rest of the UK that could be affected by decisions taken by the Scottish government – will in no way prevent the Scottish Government from taking the decisions it wants. Instead, the new principle is about ensuring fairness for other parts of the UK that could inadvertently suffer adverse effects as a result of these policies. Ministers have already commissioned a review into the impact of the Scottish Government’s new powers to cut Air Passenger Duty on airports south of the Border.

In his speech, the Prime Minister will also set an ambition that three out of five new jobs are created outside London and the South East.

The Prime Minister will say that the Conservatives have created two million jobs over the last five years – and have made a commitment to create another two million by 2020.

He will announce a new commitment to make sure 60 per cent of these new jobs are created outside London and the South East. Over the last five years, 61.5% of the two million jobs created have been outside London and the South East.
In his speech, the Prime Minister will say:
“In the Scottish referendum, we made a clear promise to devolve more powers to the Scottish Parliament.

After we won that referendum, we kept our promise, and agreement was reached – for the first time – between all five of Scotland’s major parties to give the Scottish Parliament extensive new powers. We did that because as Conservatives we believe in decentralisation and decisions being taken as close to the people they affect.

But as we go further in devolving powers to Scotland, we need to make sure devolution works for all the other all parts of this country too.

Take one example. The SNP government is committed to using its new tax powers to cut and eventually abolish Air Passenger Duty for flights from Scottish airports.  That could distort competition and see business drawn north of the border, with a huge impact on airports in the rest of the country. So we are reviewing the way Air Passenger Duty works, to make sure other cities don’t lose out.

Today I want to set out a new principle – you could call it the Carlisle Principle – that we will make sure that there are no unforeseen detrimental consequences to the rest of the country from Scottish devolution. For either England, Wales or Northern Ireland.

Under a Conservative Government the Cabinet Office and Treasury will conduct an annual review of the impact of all devolved policies on the rest of the country.

It will look at what effect Scottish government policies are having: whether it’s changes to tax rates, business rates, or university tuition fees – or Scotland’s powers over energy, agriculture, transport, and public services.

The Chancellor will report to Parliament each year, setting out the impacts, and what action is needed to make sure there is no detriment to the rest of the country.

To be absolutely clear, this is not about a UK Government stopping the Scottish Government from using its powers as it sees fit or to do things differently.  It is also not about  reopening discussion about the Barnett formula – our commitment to retain as the basis for determining Scotland’s funding from the Treasury is clear and unequivocal.

This is about making sure we understand the impact that devolution is having, and make sure that rest of the country never unwittingly loses out.

Decisions made by the Scottish Government can now have a big impact on your job, your income, and investment in your area.  That’s why we will create the Carlisle Principle, and a mechanism to make sure the rest of the country doesn’t lose out from Scottish devolution.”

Mr Cameron will make a clear commitment that the whole of the UK continues to share in the benefits from Britain’s economic growth. He will make clear his goal is for three out of five new jobs created over the next five years should be outside London and the South East.

He will say:

“At this election, the economy is the issue. It is front and centre, first and last. And I’m clear – our economy isn’t just about the nation’s statistics, it’s about the nation’s families.

It’s about the job you do, the chances your children have, the funding we have for our NHS and schools, the hope we have for our future – everything.

And I’ve always been clear, right from the start: it’s not just a bigger economy we want, it’s a balanced economy, where the success is felt from North, to South, to East, to West.

I didn’t come into this to create some reckless, booming economy just within the M25. That’s what we had before. In Labour’s Britain, where for every ten private sector jobs created in the South, just one was created in the North and the Midlands.

In Labour’s Britain, where the whole weight of our economy rested on massive public borrowing, unsustainable financial services, out-of-control immigration…a house of cards – ready to be blown away should any crisis hit.

No more. We will back business to create 2 million new jobs. And this is my goal – that more than 60 per cent of these will be outside London and the South East. That is what we’ve done in the last Parliament.

Because my vision has always been of a truly balanced economy, one built to last…

…one which is seen not just on the screens of the traders in the City of London…

…but in the great manufacturing plants of the West Midlands and North East…

…in tech start-ups from Dundee to Manchester…

…in the tourist and defence industries of the South West and Wales…

…the life sciences labs of the East of England…

…a truly national recovery.”

Some facts

·         Employment is up by 2 million since the election – meaning over a 1,000 jobs have been created on average every day. That’s 2 million more people with the security of bringing home a regular pay packet. In the three months to April 2010, there were 29.048 million people in employment. In the three months to February 2015 there were 31.049 million people in work (ONS, Labour Market Statistics, 17 April 2015, link).

·         The private sector has created over 2.3 million jobs since the election. There have been five jobs created in the private sector for every one job lost in the public sector. While there have been 422,000 jobs lost from the public sector since 2010, the private sector has created over 2.3 million more jobs. This excludes the effect of major reclassifications and compares Q1 2010 to Q4 2014 (ibid.)

·         Unemployment is down 672,000 on the election. In the three months to April 2010, there were 2.51 million people unemployed. In the three months to February 2015 there were 1.838 million people unemployed (ibid.).

·         More women in work. The number of women in work is up 875,000 since the election. In February-April 2010 there were 13.630 million women in work. This has now risen to a record 14.505 million (ibid.).

·         Claimant count 754,000 lower than at the election. In April 2010 there were 1.526 million people claiming JSA. In March 2015 the number of people claiming JSA or Universal Credit (and are not in work) was 772,400 (ibid.).

·         Youth unemployment is down 151,000 over the past year – a large fall – but this a longstanding problem and there is more to do. Over the last year youth unemployment has seen a large fall, dropping to 742,000. It was 939,000 in February to April 2010, so is down 199,000 under this Government (ibid.).

·         Long-term unemployment remains too high, but it is 165,000 lower than at the election. In the three months to April 2010 the number of people who had been unemployed for over 12 months was 788,000, that figure is now 623,000. This is a fall of 35,000 on the quarter and 188,000 on the year (ibid.).

·         Long-term youth unemployment remains too high, but it is down on the election. In the three months to March 2015 the number of 16-24 year olds who had been out of work for more than 12 months was 217,000, it is now 199,000 (ibid.).

·         Three quarters of a million job vacancies. There were 743,000 job vacancies in the three months to March 2015 – up 32,000 on the quarter and up 124,000 on the year (ibid.).

·         Creating work faster than any other G7 country over the last year. Over the past year the UK’s employment rate has grown fastest in the G7, beating countries like Germany, the US and Japan (ibid.)

·         Unemployment is lower than in France, Italy, Ireland and Spain. The unemployment rate (based on international comparisons) is 5.5 per cent– and it has decreased faster than any other G7 country over the past year (ibid.).

·         Three-quarters of the rise in employment since the election – and in the last year – has been in full-time jobs. The number of people working full-time has risen by 1.467 million (ibid.).

·         Three fifths of the growth in employment since 2010 has been in higher skilled occupations like managers and professionals (ibid.).

LABOUR’S FAILURE

·         Nearly half a million more people unemployed under Labour – in Labour’s last term in office unemployment increased by one million. In February to April 1997, there were 2.047 million people unemployed. In February to April 2010 there were 2.510 million people unemployed, an increase of 463,000 or 23 per cent (ONS, MGSC, 15 October 2014, link).

·         The number of women unemployed rose by 25 per cent under Labour. In February to April 1997, there were 784,000 women unemployed. In February to April 2010 there were 986,000 women unemployed, an increase of 202,000 or 25 per cent (ibid.).

·         Claimant count rose by 82 per cent in Labour’s last term. In April 2005, there were 840,300 people claiming Jobseeker’s Allowance. By April 2010, this had risen to 1,526,100 (ONS, Labour Market Statistics, Table CLA01, 17 July 2013, link).

·         Youth unemployment rose by 45 per cent under Labour – meaning young people were not getting the skills they need to get on in life. In February to April 1997 there were 652,000 unemployed 16 to 24 year olds. By February to April 2010, this had risen by 287,000 to 939,000 (ONS, Labour Market Statistics, 18 March 2015, link).

·         David Miliband blamed youth unemployment on the previous Government. In an interview with The Times, David Miliband said that the present Government did not ‘invent the problem of youth unemployment’, conceding that it started to become an issue under Labour from about 2005 (The Times, 16 November 2011, link).

·         The number of households where no member has ever worked almost doubled under Labour. In April to June 1997 there were 136,000 households (excluding student households) where all members have never worked. In April to June 2010 there were 269,000, an increase of 133,000 (ONS, Working and workless households 2011, Table E, 1 September 2011, link).

·         Labour ignored jobs in the Midlands and the North. For every ten private sector jobs created in the London and the South between 1998 and 2008, only one was created in the Midlands and the North (Centre for Cities, Private sector cities: A new geography of opportunity, 2010, p. 6).

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