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In full: Government response to HBOS job cuts
In full, the government's response to Aylesbury MP David Lidington's request for more support for the town in the wake of the HBOS job losses.
Dear David,
As discussed during our adjournment debate on 1st December about the difficult situation facing your constituents in Aylesbury.
I agreed to consider closely your constructive proposals to assist the area in dealing with the Lloyds Group job losses.
I would like to thank you again for the helpful way in which you engaged in the debate, and for the thought that you put into identifying possible ways to assist those affected.
I have looked carefully at your requests and will respond to each of your six proposals in turn:
1. RESOURCES TO DEAL WITH JOB LOSSES THROUGH THE AYLESBURY TASKFORCE AND FUTURE JOBS FUND.
We believe that it is right to help people through the difficult times, so that local communities and our national economy can come through those difficulties sooner and stronger.
That is why we are pleased that the Aylesbury taskforce is already in place and responding to the Lloyds/HBOS job losses.
The scale of the job losses is significant for Aylesbury, and ensuring that local support services are in a position to deal with this will be an area that the Taskforce will focus on.
The Taskforce is currently working closely with Lloyds to understand when the HBOS staff will be leaving.
We understand that this will be managed in a phased approach starting mid 2010, including where staff live, so the Taskforce will be able to plan appropriately.
Central to the Taskforce support is a rapid response team, the Continuing Employment Support Service (CESS).
CESS is a joint initiate between SEEDA and Jobcentre Plus, which has helped nearly 12,000 people over the past year back into employment in the South East.
CESS advisers go into companies facing redundancies in order to offer advice on the job market, skill to find new employment, finance and state benefits available.
The HBOS employees will also be offered a range of training options to upskill or change their career direction, which will be led by the Learning and Skills Council and Jobcentre Plus.
In addition the Future Jobs Fund (FJF) is an important tool in Government's response to the recession.
We know that in Aylesbury currently eighty 18 - 24 years olds have been unemployed for over 6 months and we hope that partners in Buckinghamshire will soon be submitting a bid for FJF that will provide opportunities for unemployed young people across the county to enter work with local employers and at the same time deliver benefit to local communities. Rightly the focus of FJF is to prevent losing a generation of young people from the workplace.
2. GROWTH AREA FUNDS
During the debate you expressed concern about the Growth Area Funds for Aylesbury.
Growth Areas and Growth Points remain an important element in our long-term strategy to provide the homes this country needs and to tackle long standing and deep seated affordability issues.
However, the worldwide recession required unprecedented and decisive action by the Government to minimise the depth and length of the recession in the UK economy and provide real help to the people and businesses hit hardest. An integral part of this was to review how we maximise the benefits of public expenditure in the downturn.
The wise range of measures that we have taken have included significantly increasing funding for provision of new housing, particularly affordable housing, as well as providing much needed housing this supports a significant number of jobs in the house building sector.
The latest element of this was a 1.5 billion Housing Pledge announced in July.
The main components of this were increases of around 500 for the main affordable housing programme and for the Kickstart programme, which provides funds to restart stalled housing sites.
The resources for this came from a cross-government review of a wide range of expenditure programmes.
The decision to reduce 2010/11 Growth Area/Point funding was, as with other longer term development programmes, reflecting the fact that the recession was impacting on short-term delivery.
For example, the plans to take forward the provision of additional electricity capacity have been deferred - as well as the slower pace of development putting back the need for this; developers are not currently in a position to make their contributions.
As you may know we have consulted on the Growth Funding reduction of 128 million and expect to make an announcement on this shortly.
The Growth Funds still amount to more than 1.5 billion over the 3 years 2008 - 11.
It will be some time before all the Housing Pledge funds have been allocated but I know that a number of schemes in Aylesbury Vale are being considered for the second round of Kickstart funding.
Aylesbury has also benefited significantly from the increased affordable housing programme.
Around 30 million, to fund nearly 600 homes, has been agreed so far this year - the fourth highest in the South East.
This is nearly double the annual average for the three previous years.
3. TRANSPORT
You mentioned both the Aylesbury Eastern Link Road and transport more generally around the area.
On the link road, the allocation of funding through the Regional Infrastructure Fund (RIF) is entirely a matter for SEEDA and the South East England Partnership Board, and is coordinated through and Investment Panel made up from both organisations.
RIF was established to allow the public sector to provide prime investment enabling infrastructure , using a mechanism that recycles that investment at a later date.
Infrastructure schemes that have the potential to unlock and bring forward growth, such as the Aylesbury Easter Relief Road, appear to be the sort of proposal worth submitting for consideration under RIF, and I would encourage local partners to continue their discussion.
I understand that the RIF Investment Panel is due to meet early in the New Year to look at possible future investment.
On the wider transport agenda, the Milton Keynes/ Aylesbury Vale DaSTS (Developing a Sustainable Transport Strategy) study has just commenced.
The purpose of the study is to understand the deficiencies of the current transport network in delivering the sustainable economic development of Milton Keynes/ Aylesbury Vale, including all strategic links to/from that area and High Wycombe.
It will seek to identify the most promising packages of interventions to be taken forward which meet the key aims of DaSTS - to deliver strong economic growth while at the same time reducing greenhouse gas emissions, tackling congestion and reducing crowding on our transport networks.
4. TAX INCREMENT FINANCE (TIF) SCHEME.
- Government is clear on the important role that local authorities and city regions play in stimulating and nurturing economic growth; is keen to explore all options that could support local authorities in achieving this; and is clear about the potential benefits of TIF if introduced successfully in the UK.
- In the Pre-Budget Report of 9 December, the Government confirmed its continuing interest in exploring, subject to the overall fiscal position, what further finance mechanisms, powers and flexibilities could support local authorities to drive growth and innovation most effectively.
Specifically, it said that it will continue to examine the framework that would be needed to implement tax increment financing and will consider the primary legislation that would be needed if schemes were to be introduced.
- In light of this the Government has undertaken to continue examining the framework that would be needed to implement Tax Increment Financing and consider the primary legislation that would be needed if schemes were to be introduced.
- It is therefore not possible for me to say that any particular schemed so far proposed (including the Aylesbury Waterside development) would be supported by tax increment financing)
5. RELOCATION OF CIVIL SERVICE TO AYLESBURY TO OFFSET PRIVATE SECTOR JOB LOSSES.
As you may be aware the 2004 Lyons Reviews concluded that central Government was 'concentrated in and around London to an extent which is inconsistent with Government objectives'.
And that 'this pattern fails to fully reflect the large cost of disparities between London and other parts of the UK'.
It is recommended that as a first tranche 20,000 jobs could be taken out of London and the South East.
The Government increased its ambition at Budget 09 and has set itself a target of achieving relocating 24,000 Civil Servant posts out of London and the South East by the end of March 2010.
The Government's existing property strategy requires all new acquisitions, lease renewals and break clauses to seek ministerial approval to stay in London and the South East, in light the the Government's relocation programme, future estate management issues as well as providing an opportunity to monitor current progress.
In Putting the Front Line First published on 7th December, the Government stated that Ian Smith will lead a review on the scope for further Civil Service Relocations, analysing the service delivery and value for money arguments for moving further posts, to report by Budget 2010.
The review will set out what specific efficiencies this might bring and outline how at least 10% of all Civil Service posts, currently based in London and the South East can be relocated in the medium term.
Obviously the Government cannot speculate on what Mr Smith will conclude as a result of this review.
I appreciate that this not the response you would wish for as Aylesbury is considered part of the South East.
6. INWARD INVESTMENT
Bringing new business into Aylesbury will definitely help to provide opportunities for local people to access employment.
SEEDA in partnership with Aylesbury Vale District Council and Buckinghamshire County Council, is funding an inward investment specialist for Buckinghamshire who started in June 2009.
SEEDA also have a dedicated Foreign Direct Investment team working with UK Trade and Investment to attract foreign investment into the South East.
In addition to bringing in new business to help create jobs, there is also support for existing businesses and potential entrepreneurs in Aylesbury.
Individuals who are interested in starting up their own businesses and can access this support through Business Link, which SEEDA funds. Business Link is also there to support businesses and to help them grow.
SEEDA is funding a new Innovation and Growth Team which has recently been set up with local partners to support high-tech, high growth companies of all sizes from starts-ups to established businesses with the potential to grow and add value to the local economy.
In conclusion I hope my response shows the range of support the Government is contributing to help those directly affected by the loss of their jobs and the wider economy.
I would like to repeat my thanks to you for bringing to the House's attention the position in Aylesbury and on behalf of the Government we look forward to working with you to try to assist constituents and others affected by these significant job losses.
Ian Lucas
Minister for Business and Regulatory Reform
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Thursday 09 February 2012
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