The Chancellor said, “Unemployment is never a price worth paying, but artificial jobs paid for with borrowed money doesn’t work either.”
In his speech at Tilbury docks in Essex, the Chancellor said governments that tried to guarantee people a job were “doomed to fail” as they ended up increasing spending to unsustainable levels, resulting in taxes going up and jobs being lost.
Mr Osborne said, “You can’t abolish boom and bust. There are always going to be ups and downs to the economic cycle and that’s why today I’m making a new commitment, a commitment to fight for full employment in Britain.
“There is no reason why Britain shouldn’t aim to have the highest employment rate of any of the world’s leading economies, to have more people working than any of the other countries in the G7 group.
“The best place in the world to create a job; to get a job; to keep a job; to be helped to look for another job if you lose one. A modern approach to full employment means backing business. It means cutting the tax on jobs and reforming welfare.”
Mr Osborne also said cuts to personal and business taxes due to take effect this week were the largest for two decades.
He continued, “The rise in the personal tax allowance from £6,500 to £10,000 since May 2010 had enabled people to keep £700 more of their income. This week you will keep more of the money you earn. This week your business can keep more of the money it makes, so you can invest, expand and create new jobs.”