John
McDonnell MP, Labour’s Shadow Chancellor,
responding to the Government’s u-turn on its £2 billion NICs rise in the Budget
last week, said:

“This
is a humiliating reversal for the Chancellor forced upon him by Labour’s
opposition. His authority is now shredded after just one Budget, and he tore up
a manifesto commitment to do it.

“We
welcome the Government’s decision to finally listen to Labour’s calls made in
Jeremy Corbyn’s Budget response along with those of business groups like the
Federation of Small Businesses to not go ahead with an unfair £2bn tax rise on
low and middle earners. But they should never have been placed in this position
to start with, and now we face yet another Tory Budget only a year on with a
blackhole in the billions. In 2015, we had the tax credit shambles. In 2016, we
had Personal Independence Payments reversal. Now in 2017 we have the u-turn on
National Insurance Contributions.

"There will be millions of working people who are now breathing a sigh of
relief, but it is the Chancellor who should be holding his breath as
this episode throws up urgent questions that he and the Cabinet must now
answer. 

“Did the
Prime Minister or the rest of the Cabinet, who must have seen the Budget in
advance and known this measure was to be implemented, raise their concerns with
the Chancellor before he announced it, worrying millions of families? It was in
the weekend papers before the Budget so they can’t say they were unaware it was
to happen.

“This is also the second year we have had a Tory Budget with a black hole in it
worth billions. This is not acceptable. What will he do to fill the shortfall
in a Budget he delivered less than a week ago without pursuing unfair tax
increases or further cuts to public services? As the Budget will still see
working people £1,400 worse off under the Government.

"On
the day the Brexit Secretary has admitted that he hasn’t looked into the costs
of the Prime Minister’s negotiating strategy, this is yet more proof that there
is disarray at the top of a government clearly making things up as they go
along.

"We need answers from the Chancellor and accountability at the top of
government. In no workplace would such practices be allowed to continue, and it
should not be allowed from those responsible for the public finances. Labour’s
new roundtable on self-employment will bring together business organisations,
trade unions and self-employed groups to lay out a serious and realistic
strategy to provide a fair deal for the self-employed at a time of major labour
market changes. We are proud to be the party of working people, small
businesses, and the self-employed.”

15 March 2017

The Green Party welcomes the falling unemployment rate but is concerned the figures mask the growing insecurity faced by workers.

According to figures published today, the unemployment rate has fallen to 4.7%, the lowest level in 12 years [1].

However, other statistics also published today reveal 905,000 people are now employed on zero hours contracts, an increase of about 101,000 in a year [2].

Jonathan Bartley, Green Party co-leader, said:

“While we welcome news that the unemployment rate has dropped to such a low level, the reality is more people than ever are employed on precarious zero hours contracts. With inflation rising and wage growth stalling, the high employment rate masks the insecurity faced by British families.

“Zero hours contracts are part of a gig economy that facilitates the exploitation of workers and companies are failing to fulfil their moral and legal duty to give their workers secure employment and basic rights.

“In this age of insecurity we should be thinking big about how we build an economy that works for everyone. That’s why the Government should follow the lead of countries like Finland which are investigating the merits of introducing a basic income, to stop people falling into poverty, while providing the choice, security and stability they need.”

Notes:

1. https://www.gov.uk/government/news/unemployment-rate-falls-to-lowest-since-2005
2. https://www.gov.uk/government/statistics/people-in-employment-on-a-zero-hours-contract-mar-2017

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Debbie Abrahams MP, Shadow Work and
Pensions Secretary, commenting
on today’s Labour Market Statistics, said:

“We welcome the overall increase in
employment, but are deeply concerned that millions remain in low paid, insecure
work.

“The Government has also failed to close
the employment gap faced by women, disabled people and ethnic minority groups,
who are all less likely to be in work.  

“Working families face the increasing
costs of basic essentials, stagnating wages and the Government slashing social
security, leaving families £1,400 a year worse off up to 2020.

“Labour would reverse cuts to in-work
support that could see working families lose £2,600 a year, ban the
exploitative zero-hours contracts being used on hundreds of thousands of
workers, and guarantee a real Living Wage.”

Keir
Starmer MP, Labour’s Shadow Brexit Secretary, responding to David Davis’ admission that the Government has not carried
out an assessment of the economic impact of leaving the EU without a deal, said:

“The
Government is recklessly talking up the idea of crashing out of the EU with no
deal. They have repeated the mantra that ‘no deal is better than a bad deal’.

“But
we now know they have made no assessment of the economic impact of the Prime
Minister failing to secure a deal.

“What’s
clear, from the CBI and others, is that there is no result that would be worse
for the British economy than leaving with no deal; no deal would be the worst
possible deal. The Government should rule out this dangerous and
counter-productive threat before Article 50 is triggered.”