Smart spending needed to create the greatest number of jobs

LGA media release - 17 April 2009

The Government must focus any fiscal stimulus on projects that can get underway immediately and that will generate the most number of jobs, rather than concentrating on large projects that could take months to get off the ground, council leaders will say todayahead of next week's Budget.

As part of a multi-million pound package to help kickstart the economy, the Local Government Association, is calling on the Government to bring forward any ‘fiscal stimulus’ and existing budgets for local projects that could generate tens of thousands of jobs for the public and private sectors.

The LGA argues that councils have predominantly small-scale infrastructure projects that can be started immediately and will generate a significant number of jobs. More of the stimulus should be targeted at locally based projects that are ready to get underway straight away if money is made available.

Bringing forward public expenditure on large-scale national infrastructure projects that could take months or years to get off the ground would do little to boost the economy and create jobs now when it is needed most.

The LGA is calling for:

• A £100m scheme to give town centres a 'facelift' - improving shopping areas, restoring local buildings and monuments and making local areas safer, that would create or safeguard 60,000 jobs.
• The extension of the home insulation scheme that would see 5 million homes insulated by 2011, creating 4,000 jobs and saving householders at least £220 a year.
• Investment to be brought forward on improving the roads for drivers, filling in potholes and easing congestion. It has been estimated that every £1m allocated to road maintenance can create up to 15 jobs, as well as supporting a range of other local businesses.

The LGA has also published today a series of proposals to help people and small businesses through the recession.

They include:

• A radical overhaul of tax breaks for small businesses that would see them receive an estimated £100m of rate relief automatically that currently goes unclaimed
• Cutting red tape to ensure that people who have been made redundant are able to access all advice and benefits immediately from a one stop shop
• Giving councils the option to waive rules that force developers to reapply for planning permission if a site is not developed for more than three years
• Pushing for much higher levels of take-up of unclaimed benefits such as council tax benefit.

Cllr Margaret Eaton, Chairman of the LGA said: “Town halls have a whole range of projects on the stocks and ready to go that would bolster employment, bring millions of pounds into local economies and help to alleviate the effects of the recession.

“For a fiscal stimulus to have the biggest effect, the money needs to be spent on projects that will create the most number of jobs in the public and private sectors and that are ready and waiting to get underway now. Public finances are tight, so we’re not asking for more money – this is about using the public money that is available more intelligently and making sure it is put to good use.

“From giving town centres a facelift and insulating people’s homes to filling in potholes, town halls are ready and willing to boost the local economy, creating jobs and getting things moving again.

”The recession is claiming around 85 small businesses every day and action needs to be taken to ensure that they’re getting all the help and support they’re eligible for.

”Some small changes could make a big difference. Making Small business Rate Relief automatic would ensure that small traders are getting all the help they are eligible for in tough times.

”If we cut red tape so people who’ve been made redundant can get advice and benefits all in one place, councils could do even more to help struggling families and businesses during the economic downturn.”

ENDS

Author: LGA Media Office
Contact:  LGA Media Team, Tel: 020 7664 3333