I welcome the news in the Budget that National Insurance will be waived for the first 10 employees for businesses that set up outside the South East of England; it’s some positive news for Wales and a welcome focus on job creation after WAG’s failures and a very tough budget that will have a big impact on Wales.
But I do have a nagging concern and that is the areas that badly need job creation and business investment probably won’t see many benefits from the measures, I mean why would you set up a business in Llangefni or Rhyl when you get the same benefits from starting up in Wrexham or why set up in the Valleys when you can be in the Cardiff, which like Wrexham has better infrastructure, a bigger talent pool and a bigger customer base, it makes far more sense from business point a view.
I accept that people can travel to work or even move to those areas plenty of people already do, but if reducing the welfare bill is a major priority for the Westminster Coalition as George Osborne spelt out, then both WAG and the UK Government are going to have to come up with something to compliment the NI scheme or as I have said before unemployment will be back to its current levels in 18 months whatever the state of the economy.
I have no doubt that the NI holiday will have positive effect on the Welsh Economy and if the Regional Growth Fund also announced is available for all of the UK it will provide much need additional finance for those willing to take the risks involved in business start that all areas of Wales need but not enough to mitigate other measures, my worry is that past mistakes are being repeated here in Wales and the investment will go to those areas most able to exploit the them, rather than other areas that could do with a economic boost.
UPDATE Its always nice to be agreed with and The Observer's Editorial says much the same about job creation today.Any source
No comments:
Post a Comment