Bank Bonus Tax jobs boost blocked by Government

Hull North MP Diana Johnson tonight voted in Parliament to repeat the bankers' bonus tax to help create up to 100,000 jobs for young people.

The move proposed by Labour, which would have seen up to 8,600 of these jobs created in Yorkshire and the Humber, was voted down by Lib Dem and Tory MPs.

The Labour Party had tabled an amendment to the Finance Bill that would have required the Tory-led Government to repeat last year's bonus tax.

With youth unemployment currently standing at almost one million, one in five young people across the country are unable to find work. Recent figures showed that dozens of applicants are chasing each job vacancy in Hull and the problem of young people not in education, employment or training is severe in Hull.

Although the global recession caused by the irresponsible actions of the banks meant youth unemployment rose sharply three years ago, a year ago the previous Labour Government's youth jobs programme was seeing unemployment starting to fall.

Last year, one of Chancellor George Osborne's first actions was scrapping Labour's youth jobs guarantee. As a result there are now more young people looking for work than when Labour left office.

This is why Diana Johnson MP backed the Labour amendment from Shadow Chancellor Ed Balls and Shadow Work and Pensions Secretary Liam Byrne for a £2 billion tax on bankers' bonuses. This would have been used to help create up to 100,000 more jobs for young people, build more affordable homes and support small businesses.

Speaking after the Commons vote Diana Johnson MP said: "Getting young people off the dole and into work is vital for preventing a huge waste of talent and money. "Failing to get Britain back to work fast enough is helping to push up the benefits bill by over £12 billion that's £500 for every household in Hull.

"We need to act now to stop another lost generation of young people like in the 1980s when youth unemployment rose for four years after the recession was over.

"That's why we need another fair tax on bank bonuses to get people off the dole and into work. It's the best way to get the growth up and the deficit down and stop Britain's young talent going to waste. The youth jobs fund would create up to 8,600 jobs in Yorkshire and the Humber.

"Sadly, yet again, Lib Dem and Tory MP voted together to block this help for Hull's youngsters and instead protected inflated bank bonuses."

People can sign up to Labour's jobs campaign by going to www.britainslosttalent.co.uk.

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