Leading article: Stimulation good, intervention bad

Share
Related Topics

The Government's second tranche of Enterprise Zones looked like a half-decent answer to yesterday's gloomy statistics showing unemployment at 2.5 million and rising at its fastest rate since the recession. Sadly, the case is unconvincing.

Superficially, Enterprise Zones have much to recommend them. It is hard to argue against tax breaks, super-fast broadband and less regulation. The scheme is designed to help rebalance the economy – from banking to industry, from north to south, from the public to the private sector. And it could create 30,000 jobs by 2015, the Government says.

The problem is that it is unclear how the latest incarnation of Enterprise Zones will be more successful than its predecessor. A similar scheme in the 1980s was an expensive flop, costing £23,000 per job created and sucking four out of five of them from elsewhere.

Eric Pickles, the Communities Secretary, is at pains to stress he has learned lessons from the past. But specifying the industry, as well as the location, looks like an attempt to pick winners. And there are dangers in skewing the market – creating rings of economic desolation surrounding the zones, for example.

One of the sites unveiled yesterday, at Sandwich in Kent, should be a warning in itself. The facilities were originally built by Pfizer with a £10m slug of public money. After the subsidies ended, the company had no qualms about walking away. There is little to suggest the latest scheme will have more lasting consequences.

Ultimately, the biggest concern from yesterday's jobless data is the rise in youth unemployment. With one in five youngsters now unable to find work, the disconnection in the labour market is widening. The issue is not just about creating the jobs, it is about creating the workforce to fill them.

React Now

iJobs Job Widget
iJobs General

Apprentice IT Technician

£150.00 per week: QA Apprenticeships: This company is a company that specializ...

1st Line Technical Service Desk Analyst IT Apprentice

£153.75 per week: QA Apprenticeships: This company is an innovative outsourcin...

1st Line Helpdesk Engineer Apprentice

£150.00 per week: QA Apprenticeships: This company has been providing on site ...

Sales Associate Apprentice

£150.00 per week: QA Apprenticeships: We've been supplying best of breed peopl...

Day In a Page

Read Next
 

There is far too much sexism in the UK - but a point scoring system against other countries won't help to tackle it

Victoria Richards
 

Upmarket and downmarket – why the modern consumer loves a bit of both

Sean O'Grady
Ricky Gervais: 'People are waiting for me to fail. If you think it's awful, then just don't watch it'

Ricky Gervais: 'People are waiting for me to fail'

As the second series of his divisive sitcom 'Derek' hits screens, the comedian tells James Rampton why he'll never bow to the critics who habitually circle his work
Mad Men series 7, TV review: The suits are still sharp, but Don Draper has lost his edge

Mad Men returns for a final fling

The suits are still sharp, but Don Draper has lost his edge
Google finds a lift into space will never get off the ground as there is no material strong enough for a cable from Earth into orbit

Google finds a lift into space will never get off the ground

Technology giant’s scientists say there is no material strong enough for a cable from Earth into orbit
Westminster is awash with tales of young men being sexually harassed - but it's far from being just a problem in politics

Is sexual harassment a fact of gay life?

Westminster is awash with tales of young men being sexually harassed - but it's far from being just a problem in politics
Moshi Monster creator Michael Acton Smith: The man behind a British success story

Moshi Monster creator Michael Acton Smith

Acton Smith launched a world of virtual creatures who took the real world by storm
Kim Jong-un's haircut: The Independent heads to Ealing to try out the dictator's do

Our journalist tries out Kim Jong-un's haircut

The North Korean embassy in London complained when M&M Hair Academy used Kim Jong-un's image in the window. Curious, Guy Pewsey heads to the hair salon and surrenders to the clippers
A History of the First World War in 100 moments: A forgotten naval victory in which even Nature played a part

A History of the First World War in 100 moments

A forgotten naval victory in which even Nature played a part
Vespa rides on with launch of Primavera: Iconic Italian scooter still revving up millions of sales

Vespa rides on with launch of the Primavera

The Vespa has been a style icon since the 1950s and the release this month of its latest model confirms it has lost little of its lustre
Record Store Day: Independent music shops can offer a tempting alternative to downloads

Record Store Day celebrates independent music shops

This Saturday sees a host of events around the country to champion the sellers of well-grooved wax
Taunton's policy of putting philosophy at heart of its curriculum is one of secrets of its success

Education: Secret of Taunton's success

Taunton School, in Somerset, is one of the country's leading independent schools, says Richard Garner
10 best smartphones

10 best smartphones

With a number of new smartphones on the market, we round up the best around, including some more established models
Mickey Arthur: Aussie tells ECB to stick with Ashley Giles

Mickey Arthur: Aussie tells ECB to stick with Ashley Giles

The former Australia coach on why England must keep to Plan A, about his shock at their collapse Down Under, why he sent players home from India and the agonies of losing his job
Homelessness: Why is the supported lodgings lifeline under threat?

Why is the supported lodgings lifeline under threat?

Zubairi Sentongo swapped poverty in Uganda for homelessness in Britain. But a YMCA scheme connected him with a couple offering warmth and shelter
A History of the First World War in 100 Moments: When the world’s biggest shed took over Regent’s Park

A History of the First World War in 100 Moments

When the world’s biggest shed took over Regent’s Park
The pain of IVF

The pain of IVF

As an Italian woman vows to keep the babies from someone else’s eggs, Julian Baggini ponders how the reality of childbirth is often messier than the natural ideal