Labour leadership contender Miliband blasts decision to scrap jobs fund project

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Wednesday, June 02, 2010
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This is Leicestershire

The man tipped to become the next Labour leader claims Government cuts could lead to "real danger and threat" for people living in Leicester.

The shadow foreign secretary David Miliband, was in the city yesterday to meet youngsters involved in the Future Jobs Fund (FJF).

The multi-million-pound FJF was created by Labour to help 18-to-24-year-olds back into work by paying them the minimum wage for a temporary work placement.

The coalition Government recently announced plans to scrap the project, arguing tough decisions have to be made thanks to Labour's irresponsible spending in previous years.

Yesterday, Mr Miliband visited the Stride social enterprise project in Woodboy Street, in the city centre, which takes on youngsters in roles from mechanics to cleaners as part of the FJF.

He said: "People are making lives for themselves out of these initiatives and they will suffer when they are cut.

"What we are seeing is real danger and threat to cities like Leicester."

But the new Conservative MP for Loughborough, Nicky Morgan, said: "If Labour hadn't massively overspent we wouldn't have to make these difficult decisions."

Out of the 78 young people so far taken on by Stride through the FJF, 14 have gone on to paid employment.

David Brazier, chief executive of Stride, said: "If they scrap it they will leave all these young people vulnerable.

"The problem is the confusion, they've said they are scrapping it without telling us what will be put in its place."

Labour MPs are also concerned over the future of Leicester's Building Schools for the Future (BSF) programme, which would see £250 million-plus spent on rebuilding schools in the city.

Labour's new Leicester West MP, Liz Kendall, has already tabled a question on the future of BSF and hopes to be selected to ask it in the House of Commons shortly.

But Nicky Morgan said: "We aim to protect frontline services, so we won't be cutting the number of teachers.

"With BSF I understand the spending has been put on hold but it's a question of education, which is not all about buildings."

Mr Miliband was also in town to drum up support among Labour Party members ahead of the party's leadership election in September.

The MP, who is currently tipped to win, said: "Labour must be in touch with its community in terms of issues like housing and schools.

"In Leicestershire and in too many other places, people voted Conservative and we must address that.

"The leadership campaign is a chance to bring credit to us as a party in how we debate. The country needs a fighting opposition not an opposition fighting with itself."

The Labour Party will be holding a leadership hustings event in the city on June 19.

The other candidates for the Labour leadership are shadow schools secretary Ed Balls, Diane Abbott, Andy Burnham, John McDonnell and Ed Miliband.

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