Jobs for the Future

Rachel Reeves is the Labour Party’s prospective parliamentary candidate for Leeds West.

The recession has hit British families, businesses and jobs hard. Responding to the recession and building the jobs of the future is the key challenge of the next government. One thing the recession has revealed is that we need a broader-based economy and to achieve this we need to be supporting the growth of new industries and jobs.

In the next few years government must make decisions on what support to give to industry, skills, research, training and jobs.  It is not a foregone conclusion that we return to strong economic growth, without the right decisions we will lose opportunities and jobs for a generation. The real risk is that a Conservative government, with their small government mantra, would condemn British families and businesses to economic stagnation at this crucial turning-point in the economy.

Investment in skills and training is vital, as the jobs of the future are increasingly going to require high levels of skills. The industries of the future – including modern manufacturing, digital technologies, creative industries, and pharmaceuticals – require high level skills in science, maths, technology and engineering. These are also crucial to the success of green technologies which have the potential to create thousands more jobs. Skills are increasingly important as global competition increases, and that’s why Labour is committed to increasing the skills of the workforce with more people going to university than ever, diplomas, apprenticeships and better access to training in the workplace.

Labour’s commitment to an innovation economy goes hand in hand with the commitment to a high skill economy.  To develop the jobs of the future we need businesses that innovate, utilise the latest technologies and meet future challenges – including the climate change challenge.  Funding for basic scientific research has doubled since 1997, and already tax credits for research and development have provided £2 billion of support for innovative businesses while Innovation Vouchers are encouraging businesses and universities to work together to develop the technologies and ideas for future businesses and jobs – absolutely critical if fantastic ideas are going to generate successful businesses.

In the last year Labour has created the Strategic Investment Fund, worth £1 billion. The money will target businesses that need funding to test and experiment with new ideas and new technologies, often working with universities in the process. The Fund will include regional pots of money to ensure that great ideas can get off the ground in every region in the UK.

No sector depends more on innovation and skills than the green technology industries.  Almost 900,000 people in the UK already work in the green, or low carbon sector, and in the supply chains supporting them.  The sector has been growing, even through the recession.  We must now ensure that we have the infrastructure and framework to take advantage of new opportunities.

Labour are taking the strategic approach, leading the modernisation of the economy.  We know that businesses will not invest in change and individuals will not make the shift to more environmental goods and services unless they believe that is the direction the economy is going in and if there are the right incentives for them to do so.  Clear leadership, and firm commitments by government – for example on nuclear and renewable energy – will unlock billions of pounds of investment. We need to maintain momentum and clear strategic direction through all the actions of government to get the investment and jobs that green industries have the potential to bring.

Because Labour recognises that markets do not have all the answers, government must help drive forward the transition to a more sustainable, greener economy.  That means increasing the price of carbon so that business invests in renewable energy.  It also means using public sector procurement to increase demand for low-carbon goods and services, including low carbon cars.  The transition also requires investment in our infrastructure, like the national grid, which must increasingly support low-carbon industry.  And it requires entrepreneurs having access to finance so that they can build the technologies of the future, including increased investment in UK innovation by the Technology Strategy Board.

Our economic future is a major theme of this General Election and I believe it is Labour who will provide the tools and support to deliver economic innovation and the jobs for the future.