:00:35. > :00:38.In the East Midlands: Now the President of the European
:00:38. > :00:41.Commission has backed it, will we finally get a Robin Hood Tax?
:00:41. > :00:43.The city council that has actually made money out of the banking
:00:44. > :00:53.crisis. And how our local authorities are
:00:54. > :00:54.
:00:54. > :36:38.Apology for the loss of subtitles for 2144 seconds
:36:38. > :36:41.Hello, I'm Marie Ashby, and coming up here in the East Midlands:
:36:42. > :36:45.We report on how local authorities are striving to create new jobs and
:36:45. > :36:48.the challenges they face. How one of our city councils has
:36:48. > :36:51.actually made money from the banking crisis, a cool �3 million,
:36:51. > :36:54.in fact. And two teenage politicians give us
:36:54. > :37:04.their verdict on Ed Miliband and the issues that directly affect
:37:04. > :37:09.But first, an issue we've been following closely on the Politics
:37:09. > :37:11.Show. The campaign for a Robin Hood Tax on the banks. Has its time
:37:11. > :37:21.finally come, now the President of the European Commission, has backed
:37:21. > :37:24.it? It is time for the financial sector to make a contribution back
:37:24. > :37:27.to society. With me now, two of our Members of
:37:27. > :37:33.the European Parliament, Glenis Willmott, who's the leader of the
:37:33. > :37:38.Labour Group, and UKIP's Derek Clark. Thank you both for joining
:37:38. > :37:44.So after all the talking, are we going to get this tax on money
:37:44. > :37:47.market transactions? I hope so. There is a lot of discussion to
:37:48. > :37:52.take place but at least we have made a start. How much could it
:37:52. > :37:58.raise and how much could Britain get? It could raise billions of
:37:58. > :38:02.pounds. This would be a tiny amount for the financial sector. People in
:38:02. > :38:08.this country think this should go forward. They contributed to the
:38:08. > :38:12.financial crisis and they should start contributing back. It would
:38:12. > :38:17.be a lot of money back into the coffers of the Treasury. It really
:38:17. > :38:21.has a head of steam now the EC has adopted the proposal? It may have,
:38:21. > :38:28.and it is very popular in the European Parliament. But when it
:38:28. > :38:34.came up in an amendment in June, it only had a small majority. The IMF
:38:35. > :38:41.don't have a problem with it. Spain, France, a whole other list of
:38:41. > :38:47.countries are supporting it? Some are not so keen, though. Do you
:38:47. > :38:51.believe it's likely to happen now? Because the European Union is
:38:51. > :38:58.moving towards what they call a post democratic society, where
:38:58. > :39:03.people like Barroso, who is not under strain to do his job from
:39:03. > :39:08.anybody in the EU, it is not the same thing as what the people want.
:39:09. > :39:12.They reckon this tax will raise �50 billion a year. I don't doubt it.
:39:12. > :39:16.But 40 billion will come from us, and that is mainly from the City of
:39:16. > :39:25.London, our biggest earner. Surely the British government can still
:39:25. > :39:28.veto it? They can still kill it off? Yes. And then it will not be a
:39:28. > :39:34.plan to Britain. They would certainly have to have a system for
:39:34. > :39:37.just the eurozone countries. But the general public wants this. They
:39:37. > :39:40.know the banking system did not work and they should pay back some
:39:40. > :39:45.of that now. They need to contribute to investment and growth
:39:45. > :39:50.in jobs. For more money raised from the City, the more money will have
:39:50. > :39:56.to invest. The British government opposes this at its peril. 65% of
:39:56. > :40:01.Brits polled say they want it. but this is because of the bad name
:40:01. > :40:07.banking has got over the last few years. First of all, the City of
:40:07. > :40:12.London... But is it not their chance to do something right?
:40:12. > :40:15.City of London next �36 billion pure profit on overseas trade.
:40:15. > :40:21.Secondly, they put something like �59 billion into the Exchequer
:40:21. > :40:25.every year. They are paying a lot of money. Whether it is enough or
:40:25. > :40:29.not is another matter. But people do not realise that the current
:40:29. > :40:34.taxes and charges on the City of London raise about �59 billion
:40:34. > :40:40.every year. Are you concerned a London will be particularly
:40:40. > :40:45.penalised by this? Of course. They will have to find �40 billion extra,
:40:45. > :40:51.which is totally unfair. And it will put us added disadvantage with
:40:51. > :40:56.other financial centres. No. This is about tax we can use ourselves
:40:56. > :40:58.in order to invest in the future of our children. European Commission
:40:58. > :41:01.President Barroso says it's the banks' chance to make a
:41:01. > :41:03.contribution back to society. Why should British banks and financial
:41:03. > :41:07.institutions have to pay the biggest price? It is on whatever
:41:07. > :41:12.financial transactions they make, so if we make more money here in
:41:12. > :41:17.Britain, they pay more. That is a good thing, surely? It is not just
:41:17. > :41:22.banks, it is financial institutions as a whole. And they will up sticks
:41:22. > :41:26.and go elsewhere. If where will they go? If the whole of Europe
:41:26. > :41:34.support it, where can they go? There are countries like Singapore,
:41:34. > :41:41.Hong Kong, Switzerland, the US. All sorts of financial institutions can
:41:41. > :41:45.make their transactions elsewhere. We also have the infrastructure of
:41:45. > :41:50.the internet and so on. There's a lot of people with these skills all
:41:50. > :41:56.over the world. Not everybody is afraid of this. Sweden tried it and
:41:56. > :42:01.said it did not work? Yes, but that was a different system. It was
:42:01. > :42:05.about where tax will be raised and claimed. That is not how Sweden did
:42:05. > :42:13.it. But we know the banks or to be making a contribution and they are
:42:13. > :42:18.not. And it is an insignificant sum of money. Nor 0.1% on transactions.
:42:18. > :42:24.It is negligible. You started talking about opportunities for
:42:24. > :42:29.jobs in this area. Even the EU Commission, with an impact
:42:29. > :42:36.assessment, have reckoned this will cost 2% of GDP. It will slow that
:42:36. > :42:42.down by 2% across Europe. That will hit. That will hit the small and
:42:42. > :42:46.medium enterprises hardest, because it always does. If he looked at the
:42:46. > :42:52.figures, the way it has been presented, it is actually not 0.5%
:42:52. > :42:56.of GDP. But we have a long way to go. There is a lot of talking to do
:42:56. > :42:58.and we will make sure Britain's interests are met. European Finance
:42:58. > :43:06.Ministers meet next week, and in November the most powerful
:43:06. > :43:12.countries convene for the G20. Is this the right time to be bringing
:43:12. > :43:22.this Paul Wood? Absolutely. George Osborne should be fighting for a
:43:22. > :43:24.
:43:24. > :43:27.Glenis Willmott and Derek Clark, thank you.
:43:27. > :43:31.Now, I'm sure our local authorities would like to get their hands on
:43:31. > :43:34.the proceeds of a Robin Hood Tax. Amid mounting unemployment, not
:43:34. > :43:37.least among their own staff, we've been looking at what they're doing
:43:37. > :43:40.to try to create jobs. Jane Dodge reports.
:43:40. > :43:43."On Yer Bike" was Norman Tebbit's message to the unemployed back in
:43:43. > :43:47.1981. And that's just what Liam Hudson has done, with help from
:43:47. > :43:51.another Conservative administration closer to home. His moped's on hire
:43:51. > :43:54.from Derbyshire County Council, part of its Wheels To Work scheme.
:43:54. > :43:57.And he found his new job as a trainee butcher while at the
:43:57. > :44:07.Worksop Work Club, one of three set up by Nottinghamshire County
:44:07. > :44:08.
:44:08. > :44:12.Council. It means everything because without having a job, I
:44:13. > :44:16.would not be able to support my partner and child. I would be on
:44:16. > :44:20.jobseeker's allowance, not being able to afford anything or pay my
:44:20. > :44:24.bills. Unemployment in the East Midlands is continuing to rise.
:44:24. > :44:26.Latest figures show the number went up by 11,000 between May and July.
:44:26. > :44:30.And it's young people who're finding it particularly hard to get
:44:30. > :44:35.a job. Unemployment amongst 18 to 24-year-olds in the East Midlands
:44:35. > :44:38.has gone up by 17% in the last year. Job Fairs are a regular event these
:44:39. > :44:48.days. Nottinghamshire County Council has organised this one in
:44:48. > :44:54.Worksop. Now, after six months, it is beginning to get depressing,
:44:54. > :45:00.seeing the news and everything. The prospect of getting a job are
:45:00. > :45:06.receding. Agencies and colleges are offering people voluntary work.
:45:06. > :45:10.Ways to find jobs and do see thes. Training to look for work but not
:45:10. > :45:13.actually specific jobs in there, so I was quite disappointed. A Jobs
:45:13. > :45:16.Fair with no employers? Teething problems, according to
:45:16. > :45:20.Nottinghamshire County Council. It's keen to point to the success
:45:20. > :45:22.of its work clubs. Another one opens in Newark next week. These
:45:22. > :45:26.are self-help groups for the unemployed with back-up from
:45:26. > :45:29.volunteers. So far, ten of those involved have found jobs. A modest
:45:29. > :45:39.number compared to the 4,000 redundancies the council has made
:45:39. > :45:39.
:45:39. > :45:43.in the last two years. There have not been 4,000 people been made
:45:43. > :45:49.unemployed. They have gone and started up businesses themselves
:45:49. > :45:52.and have done very well, actually. If you get stuck in and go and try
:45:52. > :45:56.and create some sort of a business and get involved, you have got more
:45:56. > :45:59.chance of succeeding, instead of sitting back. Liam Dougan managed
:45:59. > :46:02.to find work at a specialist costume shop in Nottingham through
:46:02. > :46:05.the now defunct Future Jobs Fund. He appeared on the programme last
:46:06. > :46:08.year. Since then, he's been promoted. The Government scrapped
:46:08. > :46:11.the scheme because it said it wasn't providing permanent jobs.
:46:11. > :46:16.Labour-run Nottingham City Council has resurrected it, splitting the
:46:16. > :46:26.cost with employers. It hopes to create 240 new jobs. But that's
:46:26. > :46:26.
:46:26. > :46:31.still less than the number of posts cut by the council in the last year.
:46:31. > :46:37.We're trying to stem the tide. But better to try that, because the
:46:37. > :46:40.tide is coming from elsewhere. Better to do that than do nothing
:46:41. > :46:43.at all. The new car park at Nottingham Train Station has
:46:43. > :46:46.provided new jobs in construction. The redevelopment of Broadmarsh and
:46:46. > :46:50.Victoria shopping centres and the extension of the tram are expected
:46:50. > :46:52.to create another 6,000. The council wants 70% of them to go to
:46:52. > :47:02.local people but admit there's no contractural obligation on
:47:02. > :47:06.employers. We are dealing with firms who have got a track record
:47:06. > :47:10.of working with local people and taking them on, and we don't expect
:47:10. > :47:14.to be any different from what they have done in the past. In contrast,
:47:14. > :47:16.Derby has lost more than 3,000 jobs in the last year, half of them at
:47:17. > :47:19.the trainmaker Bombardier. The Conservative-run City Council is
:47:19. > :47:23.fighting back, one of the few local authorities currently putting big
:47:23. > :47:32.money into job creation. It claims its �10 million regeneration scheme
:47:32. > :47:37.is the biggest such investment at the moment by any council in the UK.
:47:37. > :47:42.We are very keen to increase what we call the degraded A
:47:42. > :47:47.accommodation in the City, which will increase the number of what we
:47:47. > :47:51.call suits on the street, which we see as a clear deficit in our
:47:51. > :47:56.economy. That will be a catalyst to others in the pipeline which have
:47:56. > :47:59.been delayed by the recession. There are now nearly 200,000 people
:47:59. > :48:01.looking for work in the East Midlands. With cuts to their
:48:01. > :48:05.budgets, local authorities are increasingly relying on the private
:48:05. > :48:07.sector to provide new jobs. But with the economy still far from
:48:07. > :48:11.stable, employers are likely to remain cautious about new
:48:11. > :48:14.investment. Nottinghamshire County Council have
:48:14. > :48:24.now told us that they expect to make 2,500 people redundant, not
:48:24. > :48:30.
:48:30. > :48:34.I've been joined by two teenagers with very different political views
:48:34. > :48:37.on what we should be doing to help young people through the current
:48:37. > :48:39.crisis. Robyn Von Burg was a delegate at the Labour Conference,
:48:39. > :48:42.representing Bosworth, while Luc Chignell is chairman of the
:48:42. > :48:45.Conservative's youth division in Nottinghamshire. They're both 17.
:48:45. > :48:47.First, though, Robyn, the politicians and the pundits have
:48:47. > :48:52.all been delivering their verdict on Ed Miliband's performance this
:48:52. > :48:57.week. Did he cut the mustard? think Ed Miliband has certainly
:48:57. > :49:01.done a fantastic job for his first conference. He has inspired a lot
:49:01. > :49:05.of people at conference and the atmosphere since his speech has
:49:05. > :49:14.been very inspiring for all of us, to propel the party forward towards
:49:14. > :49:18.the next general election. Is that your view? I don't know what the
:49:18. > :49:22.atmosphere was because I was not there, but he just seems to lack
:49:22. > :49:26.something and I think that is picked upon by a few people,
:49:26. > :49:30.certainly from some of the reactions I heard on Twitter.
:49:30. > :49:34.People said they were considering Labour but because of him, he did
:49:34. > :49:38.not inspire them. For me, he does not seem to have a particular
:49:38. > :49:43.vision. He seems quite an opportunistic person who picks up
:49:43. > :49:53.on what Redican at the time. Robyn's convinced Ed Miliband has
:49:53. > :49:54.
:49:54. > :50:00.what it takes to be Prime Minister. I think a lot of young people will
:50:01. > :50:06.be affected by the Government's cuts. Do you think he really would
:50:06. > :50:11.create a fairer society? I really do. I think he has created an
:50:11. > :50:14.alternative option for young people across the nation. I'm sure a lot
:50:14. > :50:19.of young people will like the sound of a Robin Hood Tax on the banks.
:50:19. > :50:23.Are you one of them? I don't oppose the principle behind it but I think
:50:23. > :50:27.it is very important it is not something people rush into. Because
:50:27. > :50:33.it does require the support of other major economies outside of
:50:33. > :50:37.the EU. Places in Asia. Hong Kong was particularly a bigger economy,
:50:37. > :50:42.as is the US. It does need international support because we
:50:42. > :50:47.are talking about such big figures here. We do need to make sure it's
:50:47. > :50:52.in place and not something that is rushed into. I have to say, I do
:50:52. > :50:56.agree. The idea is a fantastic opportunity for a lot of people in
:50:56. > :51:00.a lot of countries to have that support, especially in social
:51:00. > :51:03.welfare as well as things like hospitals and schools. So why do
:51:03. > :51:08.think it is a good idea and it would be good for people to have
:51:09. > :51:12.those opportunities. -- so I do think. You've just seen Jane's film
:51:12. > :51:16.on councils' efforts to create jobs. What more do you think the
:51:16. > :51:19.coalition should be doing to stimulate employment? I think the
:51:19. > :51:23.scrapping of the youth unemployment scheme has affected a lot of young
:51:23. > :51:27.people in trying to find jobs. The introduction of tuition fees and
:51:27. > :51:32.the rise in them has been a slight problem, due to the fact that you
:51:32. > :51:38.only start paying back the money you owe when you have got a job of
:51:38. > :51:43.�21,000 or over, but the problem is, trying to find that job. So a lot
:51:43. > :51:46.of people, especially in my area, are finding it hard to get a job.
:51:46. > :51:50.There's been a 17% increase in the number of young people who are
:51:50. > :51:55.unemployed in the East Midlands in the past year. Do you believe the
:51:55. > :51:58.Government really has the interests of your generation at heart?
:51:58. > :52:03.think dealing with the first thing in terms of scrapping, it was not a
:52:03. > :52:07.total removal of it. It was a codification of all the different
:52:07. > :52:11.organisations and agencies out there, bringing them into the work
:52:11. > :52:16.programme, which has been one of the major things that is being
:52:16. > :52:20.pushed forward. So whilst maybe the specific programme was scrapped,
:52:20. > :52:23.they have put the resources back into the work programme, which is
:52:23. > :52:29.supporting people who are unemployed. Don't know if you want
:52:29. > :52:35.to wait for tuition fees later it or talk about that now? No, talk
:52:35. > :52:39.about it now. Certainly, the way you mentioned it, being over
:52:39. > :52:44.�21,000 before you pay it back, that is quite a common sense, fair
:52:44. > :52:47.thing to do, because people go to university, or most do, hoping to
:52:47. > :52:52.get a steady job the other side which will mean they are able to
:52:52. > :52:56.pay back what they have got, and if, for whatever reason, that does not
:52:56. > :53:01.work out, there is a safety net, which means if you are not earning
:53:01. > :53:06.more than 21,000 you are not forced into paying it back with all that
:53:06. > :53:09.pressure. That is what was lacking in the previous system. And it is a
:53:09. > :53:17.huge concern for people like yourselves, who are desperate to go
:53:17. > :53:22.to university. You are obviously very interested in politics. Are
:53:22. > :53:26.there many others out there like you? Actually, my three best
:53:26. > :53:32.friends support the Conservatives. But I think we do have quite
:53:32. > :53:37.healthy political discussions but it is just more me on my own.
:53:37. > :53:43.politics is not a dirty word? more looking at current affairs and
:53:43. > :53:48.the news, perhaps, as the thing that young people are interested in.
:53:48. > :53:51.As far as politics goes, we have got thousands of members in the
:53:51. > :53:54.Conservative future and people that have said we are not just
:53:54. > :53:59.interested in current affairs but in politics. I think politics is
:53:59. > :54:09.more of a vehicle to bring forward your ideas. Thank you both of you
:54:09. > :54:10.
:54:10. > :54:14.for your ideas today. The Robin Hood Tax has featured
:54:14. > :54:17.prominently in this week's show. But would you believe,
:54:17. > :54:20.Leicestershire County Council has actually made money out of the
:54:20. > :54:23.banking crisis! It all springs from the time when the banks needed
:54:23. > :54:28.bailing out. And the council seized an opportunity. Our political
:54:28. > :54:36.editor, John Hess, joins me now. How've they done it, John? Well, we
:54:36. > :54:40.could all do with some extra cash, couldn't we! They lent �5 million
:54:40. > :54:44.each to the Royal Bank of Scotland and Barclays Bank at the height of
:54:44. > :54:48.the banking crisis. In turn, because of interest, they managed
:54:48. > :54:52.to and getting on for �3 million that Leicestershire says has gone
:54:52. > :54:57.to cushion some of the central government spending cuts. You
:54:57. > :55:02.contrast that with the Nottingham City Council. It put millions of
:55:02. > :55:05.pounds into three Icelandic banks. They thought they were onto a
:55:05. > :55:09.winner until the bank collapse in 2008. Have they taken any political
:55:09. > :55:13.flak for lending that money to RBS and Barclays, bearing in mind the
:55:13. > :55:18.banking crisis was at its height then? The thing to remember is that
:55:18. > :55:22.a number of our big local authorities do use their cash
:55:22. > :55:28.reserves to loan to banks. And they use that interest to provide local
:55:28. > :55:35.services. Certainly, that tax payers allowance say that councils
:55:35. > :55:40.must be wary of potentially risky investments. -- the tax payers
:55:40. > :55:49.allowance. They say their investments were shrewd, unlike
:55:49. > :55:56.many local authorities, as they did not touch the Icelandic banks.
:55:56. > :55:59.how much are they in deficit on that investment now? They owe �46
:55:59. > :56:06.million and a thought that was a shrewd investment until they went
:56:06. > :56:10.belly-up. The leadership played down the impact that this bank
:56:10. > :56:16.collapse would have on budgets and local services, but so far, the
:56:16. > :56:22.city has only received just under �10 million back. Still a long way
:56:22. > :56:26.to go and one to keep an eye on? Definitely, and it still has not
:56:26. > :56:29.been quite result because it is all locked up in legal proceedings in