We need an enterprise revolution to tackle the scandal of youth unemployment

The coalition has failed to help would-be entrepreneurs innovate their way into work. Labour will show that we can do better.

Under this government, youth unemployment reached a staggering one million. Even more face the prospect of a low-skill, low-paid and insecure job. This has to change.

But we don’t just want to help people to get a job; we want to help those who want to create a job for themselves and for others. An enterprise revolution among our young people could help us tackle the scandal of youth unemployment – and help get our country back on its feet. And that’s what we’re setting as a Labour ambition today.

Today, Britain doesn’t do as well as it should in global enterprise league tables. In fact, if we had the same start-up rate as Germany or America, we could create another 200,000 new self-employment opportunities and businesses. That’s the conclusion of a brilliant new report written by Jamie Mitchell, former managing director of Innocent Drinks for Labour’s Youth Jobs Taskforce today.

The report is urgently needed. This week, we learned that the government’s much vaunted plan to help would-be entrepreneurs innovate their way into work is miles short of hitting its target. The New Enterprise Allowance was supposed to support 40,000 people set up shop. But it’s still 35% short of hitting its goal – and a measly 6% of young people have received help. We think we need to do better than that.

Jamie’s recommendations should be read and considered by anyone – and any party – who thinks that we can and should do better. Studying the pioneering work of Labour councils all over Britain, along with the great work of the Prince’s Trust and Young Enterprise, Jamie has handed us some big conclusions to think on.

First, we need to make sure enterprise isn’t just a bolt-on to careers advice. Enterprise needs to be recognised as a big option that’s open. There is no lack of talent, ideas or creativity among our young people. Our problem is that too much of this entrepreneurial energy is unrecognised or unsupported. Right now, JobCentres’ advice is mixed at best and what’s left of our careers service often gives enterprise only a fleeting mention.

Second, Jamie also encourages us to consider whether we could expand the Start Up Loan scheme, targeting young people aged 18-30, and how to put more emphasis on encouraging young unemployed people to consider the New Enterprise Allowance, which is on course to dramatically miss its targets. Local councils need to follow the example of trailblazers like Sheffield Council, which has built a team of school enterprise champions, academies like the Peter Jones Enterprise Academy offering enterprise qualifications, business networks offering advice, and universities offering incubator space, advice, training and even grants – all dedicated to boosting the ranks of local young entrepreneurs.

Next, we have to look at enterprise in schools. Young Enterprise for example, reckons that 42% of their alumni start a business during their career. That’s nearly twice the rate for those who join their programme. And finally, we need to think about how we measure outcomes a little better so that we know what works and what doesn’t.

This is a big ambition. It is to the next generation of entrepreneurs that we will look for the businesses that will help our nation thrive in a fast changing world, drive the innovation that will improve our lives, and create the decent jobs we need.

Jamie’s report is about putting entrepreneurship at the heart of our national story and builds on our ambition to make this happen - from our plans for a proper British Investment Bank with a network of regional banks to help businesses get the finance they need, to a revolution in skills giving firms the support, funding and responsibility to make this happen.

Our challenge is to open the floodgates of opportunity, giving our young people the chance to turn their good ideas into successful businesses.

Liam Byrne MP is a former technology entrepreneur and shadow work and pensions secretary

Chuka Umunna MP is shadow business secretary

Unemployed young people stand in line outside a job centre in London. Photograph: Getty Images.
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Election 2017: 30 MPs at risk from a Lib Dem surge

The Lib Dems are hopeful of winning "dozens" of seats on June 8. Here's a list of the 30 most vulnerable if the party surges.

Buoyed by the 48 per cent's Brexit backlash, Labour's disarray, a famous win in Richmond Park and a string of council by-election victories, the Liberal Democrats say they are on course to make "dozens" of gains come June 8. 

Its targets can for the most part be divided into two broad categories: the first a disparate clutch of seats held before their 2015 collapse, the second a handful of new targets whose pro-Remain electorates are at odds with Brexiteer MPs.

The party is particularly hopeful of recouping the losses it made to the Tories in its erstwhile south west heartlands at the last election. As George revealed last month, internal polling reveals most of those seats could be vulnerable to a Lib Dem surge - as several Labour-held seats in England and Wales that broke heavily for remain in last year's referendum. 

EU referendum results were, for the most part, released by local authority rather than Westminster constituency – the totals in this list, where not officially available, are taken from political scientist Dr Chris Hanretty’s estimates, of which a full table is available here.

Labour-held:

Daniel Zeichner – Cambridge
Majority: 599 (1.2 per cent)
EU referendum vote: 69 per cent Remain

Julie Cooper – Burnley
Majority: 3,244 (8.1 per cent)
EU referendum vote: 40 per cent Remain

Neil Coyle – Bermondsey and Old Southwark
Majority: 4,489 (8.7 per cent)
EU referendum vote: 68 per cent Remain

Thangam Debbonaire – Bristol West
Majority: 5,673 (8.9 per cent)
EU referendum vote: 80 per cent Remain

Jo Stevens – Cardiff Central
Majority: 4,981 (12.9 per cent)
EU referendum vote: 62 per cent Remain

Jess Phillips – Birmingham Yardley
Majority: 6,595 (16 per cent)
EU referendum vote: 36 per cent Remain

Kate Hoey - Vauxhall 
Majority: 12708 (25.6 per cent)
EU referendum vote: 81 per cent Remain

Conservative-held:

Maria Caulfield – Lewes
Majority: 1083 (2.1 per cent)
EU referendum vote: 50 per cent Remain

Luke Hall – Thornbury and Yate
Majority: 1459 (3.1 per cent)
EU referendum vote: 44 per cent Remain

James Berry – Kingston and Surbiton
Majority: 2834 (4.8 per cent)
EU referendum vote: 60 per cent Remain

Marcus Fysh – Yeovil
Majority: 5293 (5.3 per cent)
EU referendum vote: 39 per cent Remain

Derek Thomas – St Ives
Majority: 2469 (5.1 per cent)
EU referendum vote: 46 per cent Remain

Kevin Foster – Torbay
Majority: 3286 (6.8 per cent)
EU referendum vote: 40 per cent Remain

Paul Scully – Sutton and Cheam
Majority: 3921 (7.8 per cent)
EU referendum vote:  49 per cent Remain

Ben Howlett – Bath
Majority: 3833 (8.1 per cent)
EU referendum vote: 66 per cent Remain

Will Quince – Colchester
Majority: 5575 (11.5 per cent)
EU referendum vote:  49 per cent Remain

Mary Robinson – Cheadle
Majority: 6453 (12.1 per cent)
EU referendum vote: 58 per cent Remain

 Alex Chalk - Cheltenham
Majority: 6516 (12.1 per cent)
EU referendum vote: 57 per cent Remain

Peter Heaton-Jones - North Devon
Majority: 6936 (13.3 per cent)
EU referendum vote: 43 per cent Remain

James Heappey – Wells
Majority: 7585 (13.3 per cent)
EU referendum vote: 47 per cent Remain

Scott Mann - North Cornwall
Majority: 6621 (13.7 per cent)
EU referendum vote:  40 per cent Remain

Anne-Marie Trevelyan – Berwick-upon-Tweed
Majority: 4914 (12.2 per cent)
EU referendum vote: 45 per cent Remain
 

Flick Drummond - Portsmouth South
Majority: 5241 (12.5 per cent)
EU referendum vote: 48 per cent Remain

Nicola Blackwood – Oxford West and Abingdon
Majority: 9,582 (16.7 per cent)
EU referendum vote: 61 per cent Remain

Anne Main – St Albans
Majority: 12,732 (23.4 per cent)
EU referendum vote: 64 per cent Remain

 

SNP-held:

John Nicolson – Dunbartonshire East
Majority: 2167 (4 per cent)
EU referendum vote: 71 per cent Remain

Michelle Thomson – Edinburgh West
Majority: 3210 (5.9 per cent)
EU referendum vote: 71 per cent Remain

Stephen Gethins – North East Fife
Majority: 4344 (9.6 per cent)
EU referendum vote: 62 per cent Remain

Paul Monaghan – Caithness, Sutherland and Easter Ross
Majority: 3844 (11.2 per cent)
EU referendum vote: 51 per cent Remain

Ian Blackford - Ross, Skye and Lochaber
Majority: 5124 (12.2 per cent)
EU referendum vote: 57 per cent Remain

 

 

 

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