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Academia-industry group welcomes £2bn job creation plan

Image: Number 10 [CC BY-NC-ND 2.0] via Flickr

National Centre for Universities and Business says government has put ‘money where its mouth is’

An organisation supporting collaboration between businesses and universities has welcomed government plans for a £2 billion Kickstart Scheme to create thousands of jobs in the wake of the coronavirus crisis.

The scheme, announced by chancellor Rishi Sunak on 8 July, will “directly pay employers to create new jobs for any 16-to-24-year-old at risk of long-term unemployment”.

Joe Marshall, chief executive of the National Centre for Universities and Business, described the scheme as a “welcome step to keep youth unemployment down”.

“A skills-led recovery is the only way to ensure that every community and all parts of the country begin to recover economically. What’s more, in the long run, successful innovation that leads to economic growth is reliant on the flow of graduates into businesses of all kinds and sizes.”

He also warmly welcomed other recent initiatives announced by the government, including the support package for research, support for UK Research and Innovation’s Strength in Places Fund and the R&D roadmap.

“The government has set itself a target to increase R&D funding to at least 2.4 per cent of GDP by 2027 and over the last two weeks, it has put its money where its mouth is.”

He added: “We commend the government for realising the UK research base’s potential to aid economic recovery. The government acknowledged that for every £1 spent in R&D, £7 is made in economic and social benefits from helping to attract investment, boosting productivity and creating new jobs. This demonstrates the power of investing in UK research.”

In the speech, Sunak also announced a £3bn “green jobs” investment, which the government estimates will support around 140,000 jobs as well as upgrading buildings and reducing emissions.

“The chancellor has rightly recognised that decarbonising our economy will lead to jobs across the UK,” said Kate Norgrove, executive director of advocacy at the conservation organisation WWF, but she added that “while investment in energy-efficient buildings is a good first step, we also need commitments to clean up our transport system, industry and power sectors, and to protect nature”.