National Minimum Wage increase of 20% announced

Liberal Democrat Leader and Deputy Prime Minister Nick Clegg has announced that the National Minimum Wage for apprentices will increase by 20 per cent going up by 57p an hour, from £2.73 to £3.30 this October.

This is the largest ever increase in the National Minimum Wage for apprentices.

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Nick has also announced that the adult National Minimum Wage will increase by three per cent to a new rate of £6.70 this October.

This is the largest real-terms increase in the National Minimum Wage since 2008 and is set to benefit more than 1.4m of Britain’s lowest paid workers.

The increase in the apprentice National Minimum Wage will halve the gap with the rate for 16 to 17 year olds, which will increase by two per cent, from £3.79 to £3.87 per hour.

There will also be a three per cent increase in the rate for 18 to 20 year olds from £5.13 to £5.30 an hour.

Nick said:

“This is just one of the many ways in which we’ve created a fairer society whilst building a stronger economy.

“If you work hard, this government is behind you all the way. Whether you’re on low pay or starting your dream career through an apprenticeship, you will get more support to help you go further and faster.”

Danny Alexander calls for business rates review

Liberal Democrat Chief Secretary to the Treasury Danny Alexander has launched the most wide-ranging review of national business rates in a generation, paving the way for changes to how businesses across England pay the tax.

The review, set to report back by Budget 2016 will examine the structure of the current system which is paid annually on 1.8m properties in England.

The review will look at how businesses use property, what the UK can learn from other countries about local business taxes and how we could modernise the system so it better reflects changes in the value of property.

Danny said:

“Our system of business rates was created nearly 30 years ago. Since that time, the worlds of commerce and industry have changed beyond recognition. I’ve been impressed by the representations made by the business community and I know that business rates are a considerable cost.

“This government has taken measures to help businesses by capping rates and introducing reliefs for smaller businesses. But now the time has come for a radical review of this important tax. We want to ensure the business rates system is fair, efficient and effective.”

The announcement follows the coalition’s commitment in December 2014 to conduct a review of business rates and implement a £1bn package to reduce the cost of business rates in 2015-16, with particular support for the smallest businesses and the high street.

From April 1 the coalition is:

  • Increasing help for the High Street: increasing the business rates discount for smaller retail premises with a rateable value of £50,000 of below to £1,500 to 31 March 2016 benefiting around 300,000 shops, pubs, cafes and restaurants.
  • Doubling small business rate relief for a further year to 31 March 2016 to provide support for 575,000 of the smallest businesses, and ensuring 385,000 small businesses pay no rates at all.
  • Capping the rise in the business rates multiplier at 2 per cent to benefit all businesses
  • Extending transitional rate relief to support 16,000 small business facing significant bill increases due to the ending of transitional rate relief.

Lib Dems outline plans to make UK Europe’s Largest Economy

Liberal Democrats have set out plans to build a stronger economy with a target of making the UK the largest economy in Europe by 2035.

This ambition will involve overtaking both France and Germany and sustaining economic growth of an average of more than one per cent higher per year than Germany until 2035.

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Nick Clegg and Vince Cable set out the party’s five point plan for long-term sustainable growth that builds on the foundations of strong public finances and investment as the Liberal Democrats have set out in their fiscal rules.

Under our plans, Liberal Democrats will balance the books fairly and support business and innovation to allow all parts of our economy to thrive.

Leader of the Liberal Democrats and Deputy Prime Minister Nick Clegg said:

“The Liberal Democrats have rescued the economy and led the recovery. Now is the time to be ambitious about our future.

“We believe that by building a strong, modern, open economy we can become the powerhouse of Europe. We can grow faster than both France and Germany, overtaking them as the largest economy in Europe in 20 years’ time.

“That is hugely ambitious, but absolutely possible. To do it we need two things: to secure the recovery; and to put in place an ambitious long-term plan that harnesses and encourages the skills and dynamism of British workers and British businesses.”

Liberal Democrat Secretary of State for Business, Innovation and Skills, Vince Cable said:

“In government, the Liberal Democrats have enacted important reforms to move Britain away from a culture of short-termism to one where business and government thinks long-term beyond the political cycle.

“Our industrial strategy has laid the foundations to give business the confidence to invest over ten or twenty years by planning for the provision of skills, finance and innovation.

“The Liberal Democrats are on the side of business in creating an economy that is open to international students and the global skills pool our country needs to grow. Britain has thrived by being part of the European Union and that is why the Liberal Democrats remain committed to ensuring we continue to play out part in the world’s largest single market.

“We have started to reap the rewards, but we want to do more to move our economy from recovery to renewal across the whole of the UK over the coming decade.”

Nick and Vince have set out the five point plan as below:

Long Termism

The Lib Dems will strengthen and deepen the Industrial Strategies, to ensure vital sectors are not beholden to electoral cycles. By creating long-term partnerships with industries, with joint funding for research and development for a minimum of 10 years, we can support long-term innovation and growth.

To ensure that we only allow takeovers that are in the long-term interest of the UK, the Lib Dems will create a stronger public interest test. This means that where there has been considerable taxpayer support for businesses through the industrial strategies, such as in research and development, a public interest test will need to be passed before a takeover can be approved. This will ensure we protect taxpayer investments.

Finance for Growth

The Lib Dems in Government created the British Business Bank in 2012 with a target of unlocking £10bn of financing for viable smaller businesses. The Business Bank has already released over £2bn of this finance. We will expand the bank further to ensure more British businesses can access the finance they need to grow.

The Lib Dems in Government created the Green Investment Bank, to help support green infrastructure projects. So far the GIB has invested £1.3bn mobilising up to £4.8bn of further finance into green infrastructure. Once the national debt starts to fall we will give the GIB limited borrowing power so that it can back even more green projects.

The Lib Dems in Government created the Regional Growth Fund with £3.2bn of public money, to help good businesses expand and create jobs. So far the RGF has leveraged in £16bn of private sector investment, which will create and protect 573,000 jobs by the mid-2020s. We will extend the RGF throughout the next parliament.

Skills

The Lib Dems in Government have helped create more than two million apprentices. In the next parliament we will aim to double the number of employers with apprentices – meaning up to 4 million new apprentices. We will do this by targeting the apprenticeship grant at employers newly taking on apprentices as well as working with employers to design courses, which develop the skilled workforce they need.

The Lib Dems will build on the National Colleges programme that has recently seen the announcement of the High Speed Rail College and the Nuclear Industry College. Throughout the next parliament we will open further colleges to target skills gaps for industry. In addition we will protect the sustainable funding position of our universities.

Innovation

Science funding is absolutely essential in developing new technologies and ensuring long-term private sector growth. The Lib Dems will continue to ring-fence the £4.6bn science budget as we finish the job of balancing the books. Once the job of balancing the books is finished we will raise science spending in real terms.

We aim to double innovation spend across the economy, we will do this in part through greater public funding doubling the Government contribution in real terms by 2020-21 from £454m in 2014/15 to over £1bn. By doing so we can ensure that British companies are able to develop world beating technologies.

Openness

The British economy is stronger when it’s part of the European Union – the world’s largest borderless single market. The Liberal Democrats will hold an in/out referendum when there is next any Treaty change involving a material transfer of sovereignty from the UK to the EU. Liberal Democrats will campaign for the UK to remain in the European Union when that referendum comes.

We want managed immigration of high skilled workers who add value to our economy and for this reason we will re-introduce the Post-Study Work Visa for Masters students in STEM subjects. We will also end the counterproductive ‘cooling off’ rules for highly skilled workers that mean some currently have to leave the UK for 12 months at the end of their visa.

Higher Education is a valuable UK export worth billions to our economy. We do not believe overseas students are or should be seen as long-term migrants as without a further visa, students must return home at the end of their studies. For this reason we will remove students from the immigration calculations.

Lib Dems secure future aid funding

A Bill introduced by Liberal Democrat MP Michael Moore enshrining an aid target of 0.7% of the national income into UK law passed its Third Reading in the Lords earlier this week.

The Liberal Democrats have already made sure that this target was achieved under the present government and the new bill ensures that the new target will be met each year.

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As the first country to reach this milestone, and now commit to achieving it every year, the UK leads the world. The country’s development partners will now be able to sustainably plan their work for the future.

With no amendments made to the Bill in the Lords it will now proceed for Royal Assent. The Bill was taken through the Lords by Liberal Democrat Peer Jeremy Purvis.

Commenting on the historic new law, Michael Moore said:

“It has been a long campaign but we have finally made it. I am proud of the fact that not only are we the first of the world’s wealthiest nations to reach the UN target but also that we are the first country to make a recurring commitment to the target in law.

“We can now move the debate forward, focussing on how we can transform lives in the developing world by spending aid effectively and transparently.

“As a Liberal Democrat, I am proud of the efforts of my party in this area over many years and thank colleagues in both Houses for their support. I also thank all other colleagues across the parties who helped to ensure the safe passage of this important measure.”

Jeremy Purvis added:

“Following a long fight in the Lords, overcoming attempts by a Thatcherite old guard to talk it out, we have now prevailed. We will strengthen British leadership and we can be proud of our achievement.

“There is no doubt this legislation will help save lives around the World and without the Lib Dems in Government it would not have happened.“

Lib Dem’s unveil new plan to tackle Race Inequality

Liberal Democrats have set out 17 policies designed to tackle inequalities faced by Britain’s ethnic minorities.

The proposals formed under five key themes covering social and economic issues are collectively called the Liberal Democrat Race Equality Plan. They are designed to sit alongside the party’s existing policies to tackle race inequalities.

These themes are:

Representation in public life – The role of government and civil society
Creating a modern, diverse and flexible workforce – Barriers to employment
Equality before the law – Crime, justice and civil liberties
Opportunity and freedom – Lifelong education
Equality of access to healthcare
Announcing the proposals Liberal Democrat Race Equality Champion Ibrahim Taguri said:

“The time has come for race equality to be placed at the centre of the political agenda and at the heart of government.

“These seventeen policies are designed to address some of the fundamental obstacles to creating a fairer society and a stronger economy.

“I want to ensure that no future generation endures the poverty, injustices and hardships that I faced growing up.

“My door is open to anyone who wishes to discuss these proposals.”

Liberal Democrat Leader and Deputy Prime Minister Nick Clegg added:

“Government must strive to level the playing field so that everyone can look to the future and have an equal opportunity to get on in life.

“If this parliament was about reviving the economy, the next will be about rewiring the economy so that it embodies the values of fairness and opportunity, making Britain a place where every person really can get ahead.

“The Race Equality Plan is a significant step towards that and I look forward to its implementation in full.”

To ensure that the plan reflects an open and diverse culture, Ibrahim is inviting people to put forward their views of the proposals outlined in the document below. E-mail your comments and feedback to diversity@libdems.org.uk.

Cllr Tim Pickstone’s Budget Report

Last week saw the annual ‘Budget Council’ meeting of Bury Council. Councillors are required (by law) to set a balanced budget each year so this is an important meeting. Holyrood’s Lib Dem councillor Tim Pickstone reports back on the agreed budget below:

Council Tax Rise
The first news many people want to know is what is happening to their Counci Tax bill. The GOOD news is that, thanks to another grant from the Government, Council Tax rates will be frozen from 1 April 2015 for yet another year.

The Government gives Bury a grant conditional on it freezing Council Tax. Bury Council have agreed to take the grant so our Council Tax will stay the same from April.

Reductions in Spending
Bury, like many other public bodies is having to save money this year. Bury has to save around £14 million in 2015-16 – which is a very significant task.

The biggest changes in Bury will be:
– many adult care services will in the future be provided by a company which is owned by the Council, which will apparrently save around £2.5 million a year. I think we need to watch very careful how these changes are made to ensure that the actual services provided to people remain appropriate and as needed.
–  reduction in staffing costs – for example through restructuring, voluntary retirements and reducing the amount of time that people get full pay if off sick.
–  increased charges – most significant an increase in charges that the Council makes to schools of around £600,000 a year

The only actual reduction in provision that the Council is announcing in its plan  is to funding of summer play schemes and to the maintenance of parks and gardens.

Council House Rents
Bury Council has decided that the average council house rent will be frozen at 0% this year. This is by taking ‘spare’ money in the Housing Revenue Account. Although this will be welcomed by tenants it is important to think about the long term impact of reducing the size of the Housing Revenue account for the future on how much housing we can provide – so it is a complex subject. Obviously the move does not help families or individuals who are struggling with high private sector rents who cannot get a council house.

More money for Bury New Road
Last year the Council seemed very proud to announce that £500,000 was to be spent on Bury New Road through Prestwich Village.

As you will be aware nothing has happened with this, and nothing has been announced.

This year we are being told that the bill for this will now be £2 million – the existing £500,000, £500,000 from Transport for Greater Manchester funds, and taxpayers are being asked to borrow £1 million (presumably to be repaid over decades) to make up the shortfall.

Any investment in Prestwich by the Council is welcome and long overdue – but we are very concerned that nobody has been asked for their views on this issue, there are no proposals and nobody knows what is happening. Is it single lanes? Is it a bus lane? Nobody knows – but we are being asked to borrow £1 million.

Proposals that were defeated
I voted in favour of two proposals that were voted down by the majority Labour group of councillors so will NOT be happening.
This was:
– to spend £800,000 to restore the two-weekly collection of grey bins. I am a huge fan of increased recycling – but finding ways that work for different households not a ‘one solution for all’ that we have at present

– to spend £2 million from the Council’s spare ‘reserves’ on environmental improvements like pot hole repair, street maintenance and fly-tipping

The papers of the budget council meeting can be found here.

2 Million New Apprenctices

In just two weeks time will be National Apprenticeship Week, a national week to raise awareness about the positive impact apprentices are having on the economy, and on increasing employment, including increasing employment for young people.

The local Lib Dem team has been celebrating the news that 2 million apprenticeships have been created during the current parliament, thanks to the Lib Dems in Government.

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Across Bury this means that:
– 8,150 apprentships have been provided during the current parliament
– 190 local businesses in Bury have received the £1,500 apprentiship grant from the Government.

The Office of National Statistics reported that the level people in work is at a record of high of 73.2 per cent and average earnings including bonuses increased by 2.1 per cent in the quarter, compared with the previous year.

In Bury that means 1800 more jobs than in 2010.

National Apprenticeship Week 2015 is all about:
– getting more small businesses to take on apprentices
– promoting the range and breadth of apprenticeships on offer, including those at Higher level and within blue chip companies.9

Find out more about opportunities as an employee and and as an employer at the National Apprenticeship Week website here.

Bury Liberal Democrats Election Appeal

An Election Appeal page has now been set up by Bury Lib Dems.

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The aim of our fundraising campaign is to make sure that every person in Bury has a chance to hear from our Liberal Democrats and our Prospective Parliamentary Candidates, Richard Baum (Bury North) and Paul Ankers (Bury South).

On the 7th May voters across Bury will go to the polls not only in local elections, but to elect two MPs to represent the town at a national level for the next 5 years.

We’re asking for your support to make sure that every household in Bury can get an election address from the Lib Dem team during this election.

Unlike the Conservatives we don’t have the support of big businesses. And unlike Labour we don’t have our bills paid by the trade unions. We rely on local donations to help us campaign in Bury.

Please Click here to access our election appeal page.

Uk records strongest growth of G7 Nations

Growth in the UK is the highest among G7 countries from 2013 to 2014, according to the latest report by the Organisation for Economic Co-operation and Development (OECD).

Liberal Democrat Chief Secretary to the Treasury Danny Alexander has welcomed the fact that today’s OECD report sets out that the best way to secure the recovery in the next Parliament is to finish the job of deficit reduction and to do so fairly by selective tax increases on the wealthy.

Danny said:

“There’s a famous saying that in life ‘the past is the best guide to the future’ and that is true in economic matters too. That’s why we are committed to offering that same balanced approach in the next Parliament as we have had in this Parliament, as endorsed today by the OECD.

“This report confirms that the UK economy is returning to health and highlights the vital role of key Liberal Democrat policies in the turn around. Our dramatic increases in the personal allowance, the greening of the economy, the focus on infrastructure, and putting the financial sector back on an even keel are just a few examples of where Liberal Democrat thinking has been central to the economic turnaround.

Our commitment to continue the same balanced approach in the next Parliament is in stark contrast to the Conservatives who are abandoning fairness and the centre ground. By urging years of cuts for cuts sake, by unfairly finishing the job of balancing the books on the backs of the least well off and undermining our position in Europe they will put this hard won recovery at risk”.

With the country on the right track, a lurch to the right with the Tories or to the left with Labour has never posed a greater danger to our economic recovery.

UK employment reaches record high of 30.9 million

UK unemployment has fallen by 97,000 to 1.86m in the three months to December.

Figures released by the Office for National Statistics show that the rate of unemployment is now below 6 per cent and stands at 5.7 per cent.

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There are now 30.9m people in work.

The level of people in work is at a record of high of 73.2 per cent and average earnings including bonuses increased by 2.1 per cent in the quarter, compared with the previous year.

Commenting on the figures, Liberal Democrat Business Secretary Vince Cable said:

“These record figures show that the number of people in work in Britain today is at an all-time high. This is an extraordinary achievement which the Liberal Democrats in government have helped to deliver. It shows we were right to resist Tory plans to cut workers’ basic rights in order to get firms hiring. Those calls were unjustified and would have been greatly damaging.

“We have also cut long term unemployment by a quarter over the past year and those claiming unemployment benefits have fallen to their lowest levels since the financial crisis, creating a chance for everyone to get on in life.

“Many workers continue to see their weekly pay packet increase faster than inflation – meaning a real terms pay rise for millions of working families. We must now focus on seeing productivity rise, which means investing in long term skills to create a stronger economy through our industrial strategy.”