Employment depends on the Government getting out of the way of the private sector

September 16, 2010 12:07 PM

Britain's economy continues to do a pretty good job creating new opportunities and delivering relatively high employment.  Our flexible labour market means that we don't have endemic mass unemployment on the scale seen in countries like France.  Eurostat figures released yesterday show that Britain has recently been outpacing the eurozone in employment growth recently:


Employment, percentage change on previous quarter



100916 Eurostat employment 


To continue that strong performance, with necessary cuts in the size of the public sector, we need to do two things:



  • Cut regulations that stop British businesses competing and investing to create new jobs.  In his column for City AM this morning Allister Heath argues that, on top of spending cuts, "what we also need is an ambitious supply-side, pro-entrepreneur programme of marginal tax cuts, deregulation and vigorous welfare reform to jolt the private sector and labour market out of their stupor".  EU regulation threatens the City of London, climate change policies that are doubling energy prices threaten successful manufacturing industries and innumerable other regulations stifle enterprise.

  • Reform welfare so that people have a proper incentive to take the opportunities the recovery will create. If working at the minimum wage of £5.80 an hour is worth as little as 26p that will reduce the supply of labour, and thereby reduce employment.  For more information, you can read our report or watch the video:


Britain's economy continues to do a pretty good job creating new opportunities and delivering relatively high employment.  Our flexible labour market means that we don't have endemic mass unemployment on the scale seen in countries like France.  Eurostat figures released yesterday show that Britain has recently been outpacing the eurozone in employment growth recently:


Employment, percentage change on previous quarter



100916 Eurostat employment 


To continue that strong performance, with necessary cuts in the size of the public sector, we need to do two things:



  • Cut regulations that stop British businesses competing and investing to create new jobs.  In his column for City AM this morning Allister Heath argues that, on top of spending cuts, "what we also need is an ambitious supply-side, pro-entrepreneur programme of marginal tax cuts, deregulation and vigorous welfare reform to jolt the private sector and labour market out of their stupor".  EU regulation threatens the City of London, climate change policies that are doubling energy prices threaten successful manufacturing industries and innumerable other regulations stifle enterprise.

  • Reform welfare so that people have a proper incentive to take the opportunities the recovery will create. If working at the minimum wage of £5.80 an hour is worth as little as 26p that will reduce the supply of labour, and thereby reduce employment.  For more information, you can read our report or watch the video:


Latest Blogs:

TaxPayers' Alliance Icon

The sugar tax and the public finances

6:00 AM 05, Dec 2016 Harry Fairhead

TaxPayers' Alliance Icon

Working for the taxman

6:00 AM 26, Nov 2016 Harry Fairhead

TaxPayers' Alliance Icon

Further thoughts on the Autumn Statement

4:56 PM 24, Nov 2016 James Price

TaxPayers' Alliance Icon

Have we had too much austerity?

10:57 AM 23, Nov 2016 Alex Wild