Unemployment (North Northamptonshire)

Part of the debate – in the House of Commons at 2:44 pm on 26 January 2007.

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Photo of Philip Hollobone Philip Hollobone Conservative, Kettering 2:44, 26 January 2007

I congratulate my hon. Friend Mr. Bone on securing this important debate and I praise him for his tireless work for constituents on so many issues of crucial importance—not least, unemployment. Kettering is next door to Wellingborough and many of the circumstances that my hon. Friend described are also pertinent to my Kettering Constituency.

I would like to place on the record the current state of affairs regarding unemployment in Kettering. In December 1997, 1,235 unfortunate people were claiming jobseeker's allowance, compared with 1,232—a staggering reduction of three—in December 2006. Last year, an extra 219 people found themselves without work, which is a staggering increase of 21.6 per cent.

If we compare Kettering with the other 645 constituencies in the UK in respect of the percentage change in unemployment between December 2005 and December 2006, it was worse in only 21 other constituencies. On the figures since December 1997, the situation was worse in only 83 constituencies. Indeed, there has been an increase in unemployment since 2001. That year there were 781 unemployed people claiming benefit in the Kettering constituency, which has since increased by 451—well above 60 per cent.

The increase in Kettering's unemployment far outstrips that for the east midlands as a whole, and for Great Britain as a whole. As my hon. Friend the Member for Wellingborough said, the reason for that is the decline in the manufacturing base. In 1997 Kettering had 9,000 manufacturing jobs, compared with just over 7,000 today. Instead of 27 per cent. of the work force being employed in manufacturing, there are now just 17 per cent.

Somehow, constituencies such as Kettering have, unfortunately, been overlooked in the Government's efforts to tackle unemployment. Although the overall unemployment rate of 2.4 per cent. is low, the shift in the figures over the last five or six years is alarming to many of my constituents. The overwhelming reason for the change is, as my hon. Friend said, the increase in red tape faced by manufacturing businesses in Kettering and also the knock-on effect of the Government's increase in the rate of national insurance contributions. Although the money may have gone into the national health service, it has also piled on costs for manufacturing and other employers in Kettering.

North Northamptonshire faces a huge challenge over the next 10, 15 or 20 years. The Government want to build 52,100 new houses, but in their plans they allow for only an extra 43,800 new jobs. We already have an unemployment problem, and if the Government are not careful, it will get a lot worse.

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