Want to get Britain moving? Stop paying capable people to sit at home

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The former Mayor of Middlesbrough has called the Prime Minister's latest promise 'stupid'

Prime Minister Andy Burnham has promised “good growth in every postcode”.

That’s stupid. It’ll never happen because successful businesses cluster together - they don’t spread out. But every area can benefit from growth nearby. Many of us don’t live where we work and we boost our area spending our wages where we live, shop and socialise.

Growth means producing more, earning more and creating better jobs. It’s great because it gives government the extra tax income it needs to fix potholes, lock up thugs and look after older people.

The problem for the next budget is that there isn’t any money. We can’t just throw billions around. But there is some good news - and I hope the Chancellor is listening - there are affordable things we can do. I’d start with our young people.

In Middlesbrough, I’ve watched capable people drift out of life because they had no job, no routine and nowhere useful to be. As mayor, I saw how quickly months at home become years of isolation and dependency.

We’ve now got a million youngsters who aren’t working or in education or training. Way too many of them are work-capable but being allowed to hide from the world. It’s a horrible waste.

All of us need purpose, responsibility and the feeling that somebody depends on us. I even know hugely successful businesspeople who’ve struggled after selling their companies for big money, all because suddenly they had nowhere to be.

So the first thing I’d do is get every work-capable person on benefits out of the house. Offer them a job, proper training or volunteering in their community.

I’ve spent years in communities and there are 1000s of useful things to do - from picking up litter to repainting rusty railings or helping at local charities. Of course this doesn’t replace a job. But it provides routine, confidence and a reference while they move towards employment.

Once those opportunities exist, turning them down should have consequences. Taxpayers should support people who need help, but they should expect some effort in return.

I invest in growing businesses and know that every new employee is a serious financial decision. A full-time worker on the minimum wage costs an employer, on top of the £25,000 a year salary, over £3,200 a year in National Insurance alone.

At £40,000, the employer NI bill is £5,250. This is why we aren’t creating the new jobs we so desperately need.

All taxes inhibit behaviour. We tax tobacco to discourage smoking and alcohol to discourage drinking. So why the hell do we tax employers for creating jobs - just when we need them most?

We should slash the jobs tax in deprived areas, halving employer NI for additional employees. Businesses would hire, benefit bills would fall and income-tax receipts would rise. We all win.

We can fund these great steps forward by targeting benefits at those who really need them, quickly saving £ billions each year.

We need to do the bleeding obvious - stop paying capable people to sit at home and stop penalising businesses that want to employ them.