Miliband urges emergency Budget to kickstart economy and create jobs

LABOUR leader Ed Miliband has called for an emergency Budget to kickstart growth in the UK economy and end the sharp rise in unemployment.

His call came a day after unemployment hit its highest level for 17 years, rising by 114,000 in the UK and leaving 2.6 million people on the dole. Youth unemployment rose by about 50,000, with almost a million aged 16-24 who are without a job or are not in training or education.

Chancellor George Osborne is due to give a pre-Budget report on 29 November, but Mr Miliband insisted this was too long to wait.

Mr Miliband said Labour’s five-point economic plan should be the inspiration for new measures. The plan includes cutting VAT and a new tax on bankers’ bonuses. This would pay for 25,000 homes and jobs for 100,000 young people, according to shadow chancellor Ed Balls.

In the plan, January’s VAT cut would be reversed, small firms would receive a one-year National Insurance holiday and long-term investment projects, such as schools and roads, would be brought forward.

Mr Balls also proposed a one-year cut in VAT for home improvements and maintenance to 5 per cent.

Mr Miliband said: “We see unemployment at its highest level for 17 years.

“Why is the government just going to wait until the end of November to have its pre-Budget report, its autumn statement?

“Get on with it now and make a difference, get our economy moving and get unemployment down.”