Oral question asked in the House of Commons, by Stewart Hosie (Scottish National Party). It was answered on Tuesday, 15 December 2009 on behalf of the Treasury.

Budget 2009

Question: This recession is longer and deeper than either of the recessions of the 1980s and 1990s. Unemployment and youth unemployment are higher than they were in 1997, so the decision to add an additional national insurance burden for employers seems to make no sense, as it will weaken businesses' ability to create jobs. Does the Chancellor not agree with the chamber of commerce in his home town of Edinburgh that that makes no sense, and that he should have been incentivising job creation, not penalising it?

Answer: We have introduced a number of measures to help people get into work, and there are 2.5 million more people in work now than there were in 1997. Also, unemployment would have been much higher if we had followed the course of action taken in the 1990s and the 1980s. The measures that we are taking are working, and they are making sure that we are getting people back into work much more quickly than was the case in the past. Most people find work within six months, and many get back into work in a much shorter period. We will continue to do whatever is necessary to maintain jobs. That is important in every part of the country, including Scotland.

Secondary information