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THE prime minister is preparing crisis measures to support workers who lose their jobs in anticipation of an avalanche of new year redundancies.
Gordon Brown has called an emergency summit of cabinet colleagues, business leaders and trade unions to decide how to cope with the swelling army of the unemployed. Experts say that as many as one in 10 workers could be laid off if the government fails to kick-start the economy, pushing the level of unemployment above 3m. The government is preparing to:
¤ Pay firms to take on more apprentices than they need to meet current labour
demands.
¤ Pour taxpayers’ money into creating “green” industries to generate jobs.
¤ Inject huge sums of infrastructure spending into the transport system.
¤ Offer emergency loans on a case-by-case basis to car makers that face
collapse.
Downing Street also issued the strongest hint yet that it will press ahead with the third runway at Heathrow, despite environmental objections, citing it as an example of the government’s determination to modernise Britain’s transport infrastructure.
It comes amid mounting speculation that the Bank of England will announce a further interest rate cut this week – taking the figure to its lowest since the Bank was established in 1694. It has already cut interest rates dramatically since October, from 5% to 2%. Experts predict the rate will drop to 1.5% or less this week, with business calling for a full percentage point reduction.
Ministers are increasingly irritated by the behaviour of banks, which have been reining back lending despite tens of billions of pounds of taxpayer support. The Treasury confirmed that officials had been working on proposals to kick-start bank lending, but said no firm decisions had yet been taken.
A front runner is for the government to offer guarantees on the issue of new securities by the banks, which would enable them to tap into wholesale funding markets — in effect shut since August 2007.
While MPs do not return to work until January 12, Brown has summoned the cabinet for a meeting in Liverpool on Thursday to discuss how Britain can weather the storm. There is a darkening mood among ministers over the scale of the downturn, with senior figures talking in apocalyptic terms.
Brown will embark on a three-day regional tour of England and Wales, designed to reassure voters that he is not locked in the Downing Street “bunker” and understands the impact of the downturn on people.
No 10 is pinning its hopes of limiting the misery caused by widespread redundancies on persuading employers to recruit more trainees than they require. The scheme would create a “shadow” workforce with the skills and experience to get jobs elsewhere when the economy recovers. It will be the focus of a “jobs summit” to be held in Downing Street next week, bringing together leading employers from retail, manufacturing and other key industries.
Opposition politicians expressed scepticism about Brown’s flurry of activity.
“This smacks of increasing desperation by a government that said it had sorted things out – but its solutions are clearly not working,” said Chris Grayling, shadow work and pensions secretary.
Ministers are also expected to reopen talks with ailing car makers this week. Lord Mandelson, the business secretary, insists a US-style bailout of the industry would not be appropriate, but aides hinted at emergency credit for individual companies.
Brown has already said he will fast-track public projects to provide jobs. Critics say the £10 billion capital spending programme is a huge expansion of the public sector, but Brown’s aides said private contractors would carry out the work.

Sam Coates's blog about Westminster, politics and spin
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how can it possibly be a good idea to join the euro at a time like this? at least the pound can sink against the euro and the dollar so it becomes easier for us to export. something that is vital for us to start doing, as our reliance on high street and public spending has been proven unsustainable
will, grimsby, uk
The euro isn't the answer - it's crash is in the post.
ws, manchester,
Okay, first I'm Irish, but we're all in this together.
1. UK Join the Euro
2. Institute an EU-wide small business/industrial bank
3. New EU Bilateral trade rounds with US, and the BRICS
4. Jobs within EU involve a special tax for non EU nationals
5. No immigration into EU without blue card
6. relax
paul, Carlow, Ireland
He could start by employing a Middle East Peace Envoy...it would appear we are lacking one !! Hes a bit like Mcavity the cat....never there when needed.
ANT, derby, UK
New labour have been in power for nearly 12 long years, and he should accept some responsibility. The first thing he and Blair should have done in 1997 was to bring in regulation of free market dogmatism. No good blaming the US or anybody else, he should blame his own inactions.
Peter James, Glossop,
"The Prime Minister said the success of his economic policies depended on the decisions of other countries".
Golden Quote of the article. Translation: We don't know what to do so we're pinning our hopes on other countries to help us out with this mess. Good luck to us!
Andreas Andreou, Cyprus,
These will be public sector jobs, paid for by the tax payer, as there is already a huge deficit, does that mean taxes will have to go up to pay for the new jobs??? Smoke and mirrors thinking..
john, london, uk
Typical Gordon Brown - never admits his own crushing mistakes, always blames everything on somebody else. Very glad I don't have to put up with this man squandering my savings and my pension.
Christopher Holland, Canberra, Australia
Brown is an English Nixon isn't he?!
Gunnar, Reykjavik, Iceland
Adrian. Think for a minute .If you want to tax companies hiring foreign nationals are you then ready to receive back the 5 million Brits living abroad (most working) who will no longer be hired in foreign countries? UK has the second highest amount of nationals living/working abroad.Mexico is first.
KR, Florence, Italy
Brown won't be happy unitl we all depend on the state. Then he will have us over a barrell pulling our strings. Was he bullied at school, i wonder??
J Hunt, Hertford,
We have been in the throes of a recession for some years now. We need to go back to the Thatchorite years, and our attitude towards spending at the hands of greedy banks. I feel our country is a rudderless ship, and it will remain this way whoever we elect. You have to go back 20 years to see why.
Rayner, Berkhamsted, Herts
As the pound continues to fall off the cliff, inflation and higher taxs are bound to follow as we all pay for this madness and the socialist state continues to bloom. Surely the best use of this money is to reduce personal taxation so people will buy what they want instead of these useless jobs.
David Nammory, Liverpool,
I think there needs to be a company tax for employing non-UK nationals. There needs to be a reduction in benefits to encourage people to take lesser jobs such as in Maccie D's, tesco's etc where migrants are working. For UK Nationals, employers should get some reduction in tax (not much though)
Adrian, Whitehill, UK
If we belong to a European Union why do we not have a united European approach to the problem? Because it's not really a European Union?
bob HOLMES, Axbridge , England
Can the country afford this government ? Increasingly, we are the victims of a huge labour party experiment to see if they can cling on to power by mortgaging not only our childrens welfare, but their children too.
Constitutionally, can we allow this to carry on ?
David Wilkinson, Pulborough, UK
"The Prime Minister said the success of his economic policies depended on the decisions of other countries".
So, when it all goes wrong? Not my fault Guv, it was them damned foreigners wot done it.
Brown's great clunking brain cell has worked out that personal damage limitation is needed already
Andrew, Lewes, England
Well, that's it. He's already told us. If his disastrous policies don't work, which they won't as they never have done in 11 years as Chancellor and P.M., it will be the fault of other countries for not following his example and not his responsibility.
Richard, Alicante, Spain
The real story is not just those made umemployed but an even larger number taking pay cuts or on short time working which has a massive impact on take home pay and disposable income. Brown is all hot air - lets see the real evidence of any worthwhile pulic spending being brought forward.
Peter Jones, Stroud, UK
as David from hornchurch says its the private sector thats provides the taxes and as the gov already employs more than half of the work force, to take on more people who dont produce something to sell increases the public payroll.
Flash Gorden says its new money, he means freshly printed.
ken moody, sheffield, england
This has all the hallmarks of "Uncle Gordon" throwing more taxpayers money at projects in order to buy some votes prior to the next election.
steve, Abergele, UK
Cannot wait till we have zero interest rates,when you will have to pay to have your money in the bank,this means pension,wages ,bills etc,
Think about it,
I wonder how Labour supporters will stay loyal to Browns lost cause.
Mike B, Lincoln, UK
I echom most comments here with a unanimous NO to more Govt meddling. This further debt will exacerbate the structural problems of too much public spending and too little private investment in wealth creating capacity.
Shrink the State and the individual will grow
Stephen Marchant, Newton Abbot, UK
The government is actively creating unemployment by increasing Employers NI costs by about 7.5%.
He would be far better advised reducing this tax on jobs to retain what we have, than trying to create non jobs from fresh air.
John, CHELTENHAM,
I had thought the skills to jobs issue had been sorted when Brown announced 'loft-lagging' as a useful alternative for the redundant and already unemployed.
Presumably that was thought the best alternative because all worthwhile new jobs seem to have gone to immigrants.
m collins, Leeds,
Build council houses across the country, all areas have thousands on the waiting lists. Construction workers would be employed. House prices and private rents would fall and FTBs and tennants would have more spare income to spend.
House price & rents have to fall BEFORE the economy can recover.
Kevin , Doncaster, UK
Seems to me Gordon's only concern is to keep the numbers of unemployed down, therefore there is no need for him to invent ways of doing this. Do what he and Tony did earlier, direct as many as possible onto incapacity benefit no-one notices increases in this figure.
Robert, RENTON, Scotland
Labour backbenchers. you have done nothing to halt the actions of a meglomaniac prime minister so make sure these retraining schemes are good because when the election comes the majority of you will be long term unemployed.That will help you find your way back to understanding socialism.
Kenny , hove,
I appauld apprenticeships but cars, transport and green is a very narrow band of measures. The economy needs a broad raft of measures to help small,medium and large businesses across the board.Its tinkering as always with this government.Nothing short of boldness will get us out of this mess.
Robert, Caen, France
Yet another Brown package that is doomed to fail, as has the bank bailout fiasco! Considering this man was 'alleged' to be our 'best ever' Chancellor, his understanding of basic economics have deserted him, that is if he ever had any! This is another ill thought out kneejerk reaction!
Rod Ballard, Leicester,
3rd runway, building wind turbines and erecting wind farms are all very specialized work activities - typically postgraduate engineers are the right calibre. Apprentices won't cut it.
Mr Brown telling "porkies" AGAIN! Not well thought out and is this a re-announcement?
John, Chesham, UK
No problem making new jobs as long it's in manufacturing, digging new coal mines, new coal power stations or building nuclear reactors, I have just passed by 10 windmills and 2 were working what a waste of money and that is in the winter.
bill, liverpool, UK
Most work will go to immigrants, on big infrastructure projects.
Apprentices, to make tea, for the guy thats doing nothing.
Makes sense..
ronnie, Bridego Bridge, UK
More people on the State payroll means more Labour voters - how cynical can Brown / Mandelsohn get
alexei, forres, uk
I thought he'd been blissfully quiet lately!
As usual - utter rot - and a typical Labour 'spend what you don't have, to no effect' 'solution'.
Can't he and his cronies see it's over? Though even if we get rid of them, the real problem's the Left Wing PC legions of the Civil Service...
Chris, St Leonards, UK
What, so it seems they've been asleep for the last ten years on financial policy.. A substantial personal tax /business corporate tax temporary reductions as well as red tape tax would also go towards helping.
Harry Hudson, Oxford, UK
This is the perfect way to construct a "house-of-cards"!
Perhaps it falls under New Labour's massive urban development program!
peterj, aberdeen, uk
Only a fool wood believe a word Gorden Brown says, he is that low he could get under a door with a top hat on. And his front bench well it's my Birthday soon and i've invited them to my party i'm short of a few clowns
John, Carlisle, England
And how many of these jobs will goto British people? Or are the migrants going to benefit from this again? Please call an election!
Steve, London,
One has to ask, How Jobsworth Civil Servant post will be created in Gordons latest mad scheme?
mike, Plymouth,
A desperate 'make work' scheme of no immediate use. Why not do something useful and widen the roads or won't that be necessary anymore as they'll be fewer people using them to go to work?
Andy, Liverpool, UK
Parliament should hang it's head in shame, for what they have done to us, and for what they have not done for us. Not one of them deserves to be re-elected, under any pretext, we have heard it all before, and since there are several respectable alternatives, the BNP is not our only option!
Clive, Lancing, England
Great...a new army of wheelie bin inspectors.Just what the country needs.
Paul, Oxford,
The last thing the UK needs is another debt fuelled bubble. Let the banks recapitalise their balance sheets and concentrate on supporting busninesses with tax cuts and slashes in red tape.
Consumer booms lead to inevitable consumer busts. Brown needs to be replaced asap.
Edwin, Bucharest,
Absolutely Judy, Liverpool, we're the same - absolutely no help at all because one of us is working, they don't care until numbers pass the tipping point
As for creating "green" jobs, they've been raking in enough "green" taxes, it's about time we saw some sort of return for our money!
EJ, Hants, uk
Well done Gordon for putting people first. Its nice to see action as there would be nothing under David Cameron and his do nothing approach. Labour is doing what is right and it is only Labour that can help real people.
Gary Hills, Stevenage, Hertfordshire
If this is indeed the UK govt's only response to a tsunami that is about to hit them then you are really in trouble. You would think that MPs would return back to work early. That says it all really.
KR, Florence, Italy
My husband lost his job four years ago. He received no help whatsoever and hasn't worked since. We live off meagre savings and my part-time wage. How strange that this government suddenly wants to help those losing their jobs... they haven't given a damn until now.
judy, Liverpool, England
Whilst Mr Brown & the rest of his ilk are on 6 figure pay & expenses they'll never understand what the UK Taxpayers are feeling. Please, Mr Brown, go now before you do more damage.
John Clark, Northampton, UK
When will this govt realise that if the working tax payer has no money then the govt. has no money, as it is the tax payer that provides the money. You can't spend money you have not got without making a mess larger at a later date.
David, Hornchurch Essex, UK