Byrne demands capital kickstart as unemployment soars

Liam Byrne, Labour’s Shadow Mayor for the today, stepped up his call for a £3.5 billion capital kickstart for the West Midlands as new figures show unemployment has soared.

Figures published by the ONS today showed that the number of people claiming unemployment benefit nationwide spiked during the coronavirus lockdown to over 2.1 million people.

But Byrne pointed to new Bank of forecasts which show that unemployment in the West Midlands could more than double well into next year, up to 324,000. The last time the region saw unemployment that high was back in 1986.

Byrne is now calling for: • A £3.5 billion capital kickstart programme to invest in infrastructure and affordable housebuilding across the region • A jobs guarantee scheme, like the Future Jobs Fund, for those who lose their jobs • A ‘carbon scrappage’ scheme to provide discounts for electric cars, and taxis with new discounts for energy efficient boilers, solar panels and home insulation

Liam Byrne said: “Our Tory mayor has decided that there is no point 'speculating' on the scale of what might be needed to spare our families the pain of unemployment. I beg to differ. When Rover collapsed more than ten years ago we rallied together fast with a special taskforce to bring together the key players to help workers retrain and move onto new jobs. After the global financial crash of 2008, it was Labour’s bold and ambitious scrappage scheme which ensured 400,000 new cars were built and protected jobs in the automotive sector in our region.”

‘Simple maths tells us that this may entail capital investment in the West Midlands of some £3.5 billion. But capital projects have a lead time. That is why we should start planning them now. Not least because this is a once in a century opportunity to start building the sort of infrastructure, we need to speed us on a path to a zero-carbon economy.

‘This isn t just big stuff’ like tram-lines. If we create a bold carbon scrappage scheme, we could take petrol and diesel vehicles off the road, and massively increase home installation of retrofitting and solar power, doing away with fossil fuel guzzling boilers.

Liam's plan has won the backing across the region.

Walsall’s Labour Group Leader, Cllr Aftab Nawaz said, “ is a proud community and we’ve struggled after 10 years of a Tory Government. Walsall needs bold and ambitious plans to overcome the effects of the coronavirus crisis and rebuild after a decade of austerity. People across Walsall need well-paid skilled jobs and Walsall deserves investment to help us reach our full potential. Liam’s plan delivers both.”

Colleen Fletcher, Labour MP for Coventry North East said: “I welcome Liam’s plan for the whole of the West Midlands. Coventry is a proud manufacturing City that is ready to play its part in the post Covid recovery. The Government – and our Tory Mayor – would do well to back Liam’s plan and ensure we protect jobs and livelihoods in the weeks and months ahead.”

Labour’s Leader in Dudley Cllr Qadar Zada said: “Huge levels of unemployment would be a disaster for Dudley. We need investment in our

communities, our schools and in new green technology which will lead to more jobs. Liam’s plan would be terrific for our Borough. We just need to convince the Tory Mayor and the Tory Government to back it.”

END

Notes:

Unemployment Scenarios

Forecaster Bank of England

UK Labour Force UK Labour Force

Forecast 7.0% Unemployment Rate

1. Forecast UK 3,123,077 Unemployment in 2021

2. W Mids current 10.4% share of UK unemployment *

3. Implied W Mids 324,800 unemployment 2021 (1 X 2)

4. Current West 134,000 Midlands unemployment

Potential rise 190,800 242%

WMids Metro Area: unemployment by rise in %

Notes: Unless otherwise stated the figures in this table are for the alternative claimant count. The alternative count models the number of people claiming unemployment related benefits had Universal Credit (UC) been in place since 2013. Figures include JSA claimants, UC claimants who are required to seek work (excluding those awaiting a Work Capability Assessment) and estimates of additional claimants who would have been required to seek work had UC been in place. The final columns provide figures for people who have actually claimed unemployment related benefits (including those awaiting a Work Capability Assessment).They do not include the additional claimants and are rounded to the nearest 5.

Figures are provisional. The claims by type may not sum to the total claimant count due to statistical disclosure control. Claimant rate is the proportion of the population aged 16-64 who are claiming unemployment related benefits.

Actual count (April 2020) Number Annual change level % Aldridge-Brownhills 2,175 1,200 123 2,220 1,125 103 Coventry North West 3,565 1,805 103 West Bromwich West 4,775 2,345 97 Solihull 1,930 945 96 Coventry North East 5,040 2,460 95 Warley 4,615 2,210 92 Coventry South 3,540 1,665 89 West Bromwich East 4,070 1,840 83 Walsall South 4,945 2,190 79 Walsall North 5,140 2,225 76 Stourbridge 3,270 1,410 76 Halesowen and Rowley Regis 3,385 1,400 71 Wolverhampton South West 4,515 1,820 68 Dudley South 3,345 1,335 66 Wolverhampton South East 5,620 2,155 62 Meriden 3,930 1,435 58 Wolverhampton North East 5,190 1,895 58 , 4,950 1,750 55 Birmingham, Yardley 6,315 2,215 54 Birmingham, Northfield 5,775 2,020 54 Birmingham, 7,340 2,565 54 Dudley North 4,020 1,385 53 Birmingham, 5,315 1,765 50 Birmingham, 7,400 2,400 48 Birmingham, Hodge Hill 8,470 2,660 46 Birmingham, 11,445 3,465 43 Birmingham, 6,800 2,005 42

West Midlands 217,725 95,445 78

WMids Metro Area: unemployment by rise in numbers

Notes: Unless otherwise stated the figures in this table are for the alternative claimant count. The alternative count models the number of people claiming unemployment related benefits had Universal Credit (UC) been in place since 2013. Figures include JSA claimants, UC claimants who are required to seek work (excluding those awaiting a Work Capability Assessment) and estimates of additional claimants who would have been required to seek work had UC been in place. The columns provide figures for people who have actually claimed unemployment related benefits (including those awaiting a Work Capability Assessment).

Figures are provisional. The claims by type may not sum to the total claimant count due to statistical disclosure control.

Actual count (April 2020) Number Annual change level % Birmingham, Ladywood 11,445 3,465 43 Birmingham, Hodge Hill 8,470 2,660 46 Birmingham, Hall Green 7,340 2,565 54 Coventry North East 5,040 2,460 95 Birmingham, Perry Barr 7,400 2,400 48 West Bromwich West 4,775 2,345 97 Walsall North 5,140 2,225 76 Birmingham, Yardley 6,315 2,215 54 Warley 4,615 2,210 92 Walsall South 4,945 2,190 79 Wolverhampton South East 5,620 2,155 62 Birmingham, Northfield 5,775 2,020 54 Birmingham, Erdington 6,800 2,005 42 Wolverhampton North East 5,190 1,895 58 West Bromwich East 4,070 1,840 83 Wolverhampton South West 4,515 1,820 68 Coventry North West 3,565 1,805 103 Birmingham, Edgbaston 5,315 1,765 50 Birmingham, Selly Oak 4,950 1,750 55 Coventry South 3,540 1,665 89 Meriden 3,930 1,435 58 Stourbridge 3,270 1,410 76 Halesowen and Rowley Regis 3,385 1,400 71 Dudley North 4,020 1,385 53 Dudley South 3,345 1,335 66 Aldridge-Brownhills 2,175 1,200 123 Sutton Coldfield 2,220 1,125 103 Solihull 1,930 945 96

West Midlands 217,725 95,445 78