The end of the vacation program must be the beginning of a renewed focus on the rest of London


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The vacation program was a lifeline for London workers. At its peak, up to a million Londoners were on leave – from construction workers to bakers, programmers to cafe owners (and many of my staff at the Center for London). We all know someone who has relied on government support and who can be grateful for the government’s support to get them through the worst of the pandemic. At a time of great crisis, this was exactly the support many needed from their government.

The dissolution of the vacation schedule, which begins today, marks the beginning of a long journey of recovery and transition to a post-pandemic economy. The jury isn’t sure how bumpy this trail will be, but modeling by the New Economics Foundation suggests that up to 850,000 jobs could be at risk of being laid off or working hours reduced if the program expires .

Vacation could only ever be a temporary measure – the government does not want to support jobs that will not survive the pandemic, nor can the country pay for the program on a permanent basis. However, given that it is about people’s jobs and business survival, ending too early and without targeted support for people working in the hardest-hit sectors and regions could cause great damage that will cost more in the long run.

The challenge for London is that the government has not yet fully recognized the impact of the pandemic on the city and its impact on the country’s recovery. In Westminster and Whitehall there is a dangerous assumption that everything is in order in London and that the city will recover on its own. That is what it intended to do, it argues, in the recession of the early 1990s and after 2009; London has a habit of innovating and adapting when it is needed most. But while London’s population rose to over nine million in the latest ONS projections released last week, millions left the city between World War II and the mid-1980s. It cannot be assumed that London will only grow.

However, this optimism overlooks the fact that London has consistently had the highest number of employees on leave of any English region since July 2020. And although unemployment has fallen, London still has the highest unemployment rate of any region – almost 40 percent higher than the national average. Most worryingly, young people were at the end of this situation, accounting for half of all job losses, with young black Londoners being the hardest hit.

One country policy doesn’t work everywhere and London’s unique needs require tailored support – such as investing in skills and creating green jobs – to stimulate the economy and help working Londoners who may be ahead in difficult times.

The Prime Minister has promised a “green recovery” from the coronavirus and this is to be welcomed. We need a comprehensive green jobs program and a training program that enables everyone to make the transition to a climate-friendly economy. But green jobs also have to be good jobs, with career development, employee rights and fair pay. And as young Londoners have been hit hard by the pandemic, the government needs to improve continuing education and bring funding closer to higher education. These include increasing the teaching aid for subjects relevant to a lack of skills and making learning affordable by extending the lifelong guarantee of skills to higher-quality courses.

Given the importance it has in Britain, the government must see the recovery of London as central to the recovery of the whole country. If London is slow to recover, it means the Treasury is spending less money helping communities, towns and cities outside the capital. If the government is serious about the increase, then it must try to protect jobs in London and also to help Londoners find employment.



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About Nina Snider

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