I’m not sure if this is a case of the left hand not talking to the right hand, or just a continuation of the utter economic incompetence that has been a hall mark of this bunch since day one.
To make the previous Government look like a high water mark is an achievement in itself, but the latest news that they’re launching a package to fund young people on benefits into jobs in hospitality made me check the calendar that it wasn’t April already.
Apparently, the Government has created an £820m pot (wonder where they got that money from…) to tackle rising youth unemployment by subsidising six month placements for 25 hours a week in, wait for it… hospitality and construction.
So, just to remind those of you who might have forgotten (ie the Government), at the last two Budgets, the Chancellor has punitively taxed hospitality and employers - raising business rates, National Insurance Contributions (NICs) and the minimum and national living wages.
14 year high
In the wake of the impact of the previous Budget, trade associations estimated around 80,000 to 100,000 jobs were lost from hospitality, mostly impacting on young people.
A recent report in The Telegraph said unemployment levels were at a 14 year high as jobs continued to evaporate as a direct result of Rachel Reeves economic policies for growth
Pubs are closing at the fastest rate since the 2008 financial crisis and most are predicting that to accelerate as we get into the New Year.
Maybe someone needs to tell Sir Keir and Rachel you can’t create subsidised jobs in an industry that is unlikely to exist for much longer under their stewardship.
The biggest irony and frustration for the hospitality sector, apart from the fact we told the Government this would happen, is that this pot of cash to subsidise roles would not be needed if they reversed the decision of the last couple of Budgets.
Huge employer
The hospitality sector is a huge employer of young people, giving many people a taste of work for the first time, a crucial experience in life skills, and for those that want it, exceptional career opportunities.
Well, it used to, until the Government decided to make employing people so expensive they’re now having to offer subsidies to get the same people into work.
The whole situation can be filed under the “so stupid you couldn’t make it up” folder. Any sensible leader would recognise this for what it is and think, hang on, have we got something wrong here.
Sadly this Government seems determined to continue to drive forward putting the economy, and particularly the hospitality sector on a collision course with a brick wall.
We’ve got three and a bit more years of this idiocy, I just hope they’ll be some left in the industry to pick up the pieces when it’s over.
