Huw pledges to tax bank bonuses to fund jobs for young people in Ogmore

Huw Irranca-Davies, Labour parliamentary candidate for Ogmore, has called for a tax on bank bonuses to fund more jobs for young people in Ogmore.

Huw Irranca-Davies recently signed a pledge with Labour’s Shadow Chancellor Ed Balls and Shadow Work and Pensions Secretary Rachel Reeves that the next Labour Government will tax bank bonuses to fund more jobs for young people throughout the UK.

Ed Balls, Huw I-R and Rachel Reeves

Under Labour’s Compulsory Jobs Guarantee, the next Labour Government will ensure that every young person on unemployment benefit for more than 12 months will be given a paid starter job. Labour’s jobs guarantee will also apply to all adults aged 25 or over on unemployment benefit for more than two years. Those who are able to work will be required to take up the jobs on offer or face losing their benefits.

If Labour’s Compulsory Jobs Guarantee were introduced today, 55 young people would benefit in the constituency of Ogmore and 3,535 young people would benefit throughout Wales.

Under David Cameron’s government, the number of young people aged 18-24 claiming Jobseeker’s Allowance for over a year has doubled – from 28,300 in May 2010 to 56,100 today.

The rise in youth unemployment over this parliament has occurred at the same time as bank bonuses are on the rise and the wealthiest in this country are enjoying a tax cut from the tory-led Government. Young people in Wales, who have been hit hardest by the recession, are being left behind.

Labour’s Compulsory Jobs Guarantee is a fully funded commitment, paid for by repeating Labour’s successful tax on bank bonuses at the start of the next Parliament and restricting pensions tax relief for people earning over £150,000 to the same rate as basic rate taxpayers. Labour’s tax on bank bonuses in 2010 raised £3.4bn, according to the Office for Budget Responsibility. In addition, the House of Commons Library estimates that restricting pensions tax relief for those earning over £150,000 will raise £900m-£1.3bn each year.

Huw Irranca-Davies said, “Under David Cameron’s government too many young people in South Wales are struggling to find work and are not seeing any economic recovery at all. After the global banking crisis and with bank bonuses soaring again this year, it is fair to pay for our jobs plan by repeating Labour’s tax on bank bonuses.”

“We cannot afford to be wasting the talents of thousands of young people and leaving them stuck on the dole for years on end. We need to get young people and the long term unemployed off benefits and into work so we can all earn our way out of the cost of living crisis.”