Pamphlets

The economic downturn, regions, skills and care

  • Guardian Professional,
  • Article history

Economic downturn

As the recession tightens its grip, organisations are getting down to the weighty issues of presenting their take on how to deal with it. Nesta, the arts and technology organisation, unsurprisingly perhaps believes science and innovation is a way to mitigate its effects. In Attacking the Recession, the organisation calls for the government to deliver a "new economic deal" focusing on long-term economic goals as well as the short-term stimulus of the economy through measures announced in the pre-budget report.

These include the rollout of a £15bn ultra-fast broadband network, a national economic strategy to set up and support sectors such as low-carbon technologies, and fostering a new, more entrepreneurial approach to public services, as well as social and business networks to help people find work. It argues that this investment will help Britain grow its way out of a recession but says it can also be an opportunity to address social challenges. For example investing in environmental technologies could generate £12bn in revenue by 2020.

Hard Labour from the Work Foundation argues that the economy needs a fiscal boost of 1% of GDP or £15bn. It suggests financial measures such as a higher tax rate of 75% for annual bonuses. It urges a more positive approach to regulation, a scaling back of the government's welfare to work targets to 80% of lone parents and other benefit claimants into work and warns that with unemployment rising, either Jobcentre plus services must be expanded or more private sector and voluntary providers have to be brought in. Investment in skills must be maintained.

The pamphlet calls for employer placements such as subsidised employment and training through the New Deal, particularly in the public sector, should be expanded. The government must also help kickstart the construction sector, bringing forward as many projects as possible, and giving more funding to organisations such as the Housing Corporation and local authorities. It emphasises that the public sector can play a stabilising role during a recession and warns against reductions in public expenditure in the regions.

Nine meals from Anarchy from the New Economics Foundation looks at the big picture and says things are even worse than we thought. On top of the economic meltdown, we have food, energy and climate systems that are on the verge of collapse. It calls for a green new deal, "a decarbonisation diet", and massive infrastructure investment in the environment which can create new jobs and skills. It also says we should learn from previous times of global instability and reduce our dependence on imported goods.

Regions

Local Government Association research, From Recession to Recovery, looks at patterns of employment during a recession and concludes that it could result in huge variations in performance, with London most likely to underperform in a recession, and the south-west least likely. Big cities such as Newcastle, Leeds and Manchester are likely to do better, however. As a result, it concludes that the current policy of devolving decision making to the regions becomes "more obvious and more urgent".

However, the Centre for Cities gives a mixed review of Regional Development Agencies' achievements so far and says that something needs to be done to reform England's "muddled system of regional governance". Its paper, The Future of Regional Development Agencies calls for the restructuring of the present system of devolution to the regions, including setting up a single development agency for the north of England from the present three agencies and streamlining or abolishing RDAs elsewhere. It says that power should be moved down to the city-region or sub-regional level, which corresponds more closely with "real economies".

Skills

The Skills Paradox from Demos addresses the polarisation between Britain's high skills culture and those people who lack even basic skills - estimated to be one in six people who don't have the literacy of an 11-year old - and who are less likely to receive job-related training than those who have qualifications.

This is condemned as a "moral crime" by Demos director Richard Reeve. While applauding some of the work that's gone on around skills, such as the Leitch review, this pamphlet calls for a rethink of skills strategy. It focuses on three main areas: construction, IT and children's services. It concludes that while there is an economic need for better skills, it is also about creating a fairer, more equal society.

A whole labour market strategy is needed, not just a skills strategy, to incentivise all employers to provide learning opportunities. But on top of this, there needs to be more learning and those within large bureaucracies should be encouraged to come up with their own ideas. This will be hard to achieve but goes hand in hand with the development of more flexible, personalised public services, argue the authors, Duncan O'Leary and Kate Oakley.

Care

Adult care services need to work better with children's services in order to avoid a repeat of a tragedy such as Baby P, according to Families Matter, from the New Local Government Network.

They say that while children's services may be joined up following the Climbié inquiry, integration in single services is not enough. Case workers should have access to information about everyone in a household.

And the common assessment framework for children at risk should be extended to the rest of the family. More information sharing ­between services, such as schools, GPs and other agencies, should also establish a set of "flags" or "triggers" of a child at risk.


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