50 mistakes in 100 days (41-45)

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OsborneBy Howard Dawber

Over 100 days ago, Britain woke up to a new coalition government. In that time they have already displayed extraordinary economic illiteracy and are beginning to champion a dangerous mix of cruelty and cheerful incompetence, perhaps already worse than any government in living memory.

Here are the numbers forty-one to forty-five of the top 50 things they have done wrong … so far…

41. CUTTING THE JOBSEEKERS’ GUARANTEE

The Con-Dems are cutting the two year Jobseeker’s Guarantee, which promised every adult who had been out of work and claiming JSA for two years a guaranteed offer of a job, internship, volunteering placement or work experience. It now appears that the guarantee will now be completely cut.

Why is it a bad idea? Along with all the other measures to help people back into work which the coalition has decided to cut, this scheme is vital right now. The ConDems have said they will put in a new programme of help for jobseekers by next summer – however this effectively condemns the 2.5 million unemployed people to go without this structured help for the next year.

42. ENDING FREE SWIMMING FOR UNDER-16s AND OVER-60s
Labour brought in free swimming for children and older people to help keep the nation healthy and make sure these groups used their local pool. A cheap, popular scheme which helped drive business to local leisure centres, especially out of peak times. The ConDems have decided to end the scheme.

Why is it a bad idea? Along with a lot of their other cuts, this one may cost more in the long term. Swimming is good exercise and if making it free encourages people who otherwise would not go to their local pool, it helps reduce obesity and heart problems. The new government’s own report on the scheme showed it has has a positive impact on the exercise levels of the target groups, and has also driven additional fee-paying customers into pools. A short-sighted and mean-spirited decision.

43. CUTTING SPORT FUNDING – AS LONDON 2012 APPROACHES
The ConDems, who made such a show of supporting England in the World Cup, have decided to make drastic cuts to the budgets of our sports bodies. UK Sport has had an immediate budget reduction of £1.7 million and Sport England is facing £4.254 million of cuts. Sport England have said they are going to try to achieve this through further reductions in administration and back office functions. However, their Chief Executive notes that this will be ‘challenging, given the £20 million savings we are already delivering in our administration costs over the current three-year spending period’.

Why is it a bad idea? Sport is already under-funded. Now we are about to host the Olympics and our national sports bodies are going to be scraping around to fund training and support for elite athletes, as well as being unable to capitalise on the huge explosion of interest in sport expected, when they should be building new facilities and funding new projects. A very short sighted decision.

44. YOUTH FACILITIES MONEY CUT AND GIVEN TO “BIG SOCIETY BANK” INSTEAD
Under Labour, the government planned to use money lying in dormant bank accounts to fund a major expansion of youth facilities like youth clubs and skate parks. The coalition has decided instead to use this money to fund a new “Big Society Bank” which will be used to promote Cameron’s pet Big Society schemes.

Why is it a bad idea? This effectively steals money which should be going to young people and hands it over to central government to be used in the promotion of pet projects. Shameful. What’s even worse is that Extended Schools and youth services are also facing big cuts so these vital facilities are going to be hit on day to day running costs as well as capital. Someone should tell Cameron that these projects help keep young people off the street and out of trouble…

45. CUTS TO LOCAL DEVELOPMENT FUNDING
Local authorities in deprived areas depend on funding from central government to pump prime regeneration and job schemes. This isn’t top-down bureaucratic waste – it’s essential seed-core funding. Thatcher and Heseltine understood this which is why they set up powerful and well-funded Development Corporations to revitalise the inner cities of the 1980s. But this ConDem coalition is cutting most of the key schemes which help support business in our most needy areas. £49.9 million has been cut from the Working Neighbourhood Fund, which aims to tackle worklessness in deprived areas, £17.5 million has been cut from the Local Enterprise Growth Initiative (LEGI) which aims to stimulate economic development in deprived areas and £186 million has been cut from Regional Development Agencies.

Why is it a bad idea? This takes money away from deprived areas and will make it much harder to promote economic growth.

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