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Growth benefits will take time - PM


Prime Minister David Cameron will take part in a question and answer session with employees

Prime Minister David Cameron will take part in a question and answer session with employees

Prime Minister David Cameron will take part in a question and answer session with employees

David Cameron announced the creation of nearly 10,000 new jobs as he continued a four-day tour of businesses across the country, but admitted it will "take time" before the benefits of economic growth are felt by families.

The Prime Minister's message was dealt a blow by the announcement by UK Coal of plans which could cost 1,300 jobs with the closure of two of Britain's three remaining deep-pit coal mines.

Mr Cameron promised the Government would do "everything we can" to help preserve jobs at the pits in Kellingley, North Yorkshire, which employs 700 people, and Thoresby in Nottinghamshire, which employs 600.

He confirmed talks were under way with the company over possible bridging finance, but acknowledged that he was "limited" in the amount of assistance he could provide using taxpayers' money.

The Prime Minister was today visiting Manchester, Birmingham, and Newbury in Berkshire, to highlight job creation and the rise in the level of the personal tax allowance to £10,000, which comes into effect this weekend.

Speaking on BBC1's Breakfast, he acknowledged that many households have yet to feel the impact of an economic recovery which he said had so far been characterised by job creation rather than real rises in wages.

"The truth of the matter is this - the British economy is improving. We have got 1.3 million more people in work, we have got more businesses in our country. That is good news.

"But we are recovering from a long, deep and difficult recession, and it does take time before people really feel the effects of an economic recovery.

"We have seen this recovery so far come in jobs and more people getting into work, rather than in an increase in wages. I think over time wages will increase. We are helping people by cutting their taxes, so this week you can earn £10,000 a year before you start paying income tax.

"But if your question is, 'Does it take time for people to really feel a recovery?', yes, of course it does. All the more reason for sticking to our long-term economic plan and not going back to the bad old days of more borrowing, more spending and more debt."

Birmingham Airport accounts for the bulk of the new posts being announced, with 4,000 jobs on site and the same amount in the supply chain, as a result of a revamp that includes a £40 million extended runway due to be operational next month.

Communications giant Vodafone is taking on an extra 1,400 staff while Accenture, a glob al management consulting firm, is taking on around 2,000 this year, with 500 posts still to be filled.

The announcements will provide a boost to the Prime Minister as he attempts to explain the measures unveiled in last month's Budget during his "economy-focused" tour that started yesterday at a branch of John Lewis in Greater Manchester.

In an appearance on the sofa at the BBC's Salford studios, he said: "Today, I am travelling round the country highlighting the fact that there are jobs coming in this economy. I am going to be in Accenture here in the North West straight after this, where they are creating 2,000 jobs this year.

"I am going to Birmingham, where the extension of the airport is creating 4,000 jobs, then going to be in Newbury, where Vodafone are creating over 1,000 jobs.

"This is all part of a picture of Britain competing and succeeding."

Mr Cameron will hold a PM Direct - a question and answer format with small audiences he started while leader of the opposition - with workers he meets today to press home the changes to corporate and personal finance he has pushed through.

The PM will insist that business tax reforms that are coming into force will help firms hire more people and claim that the jobs announcements are further proof that the coalition's economic plan is working, and will highlight reforms to the employment allowance that the Government says will give 1.25 million businesses and charities up to £2,000 off their national insurance contributions.

He said that changes to the personal tax allowance - which the Government says are helping 26 million people, including three million taken out of income tax altogether - represented "a very big change for our country".

Shadow work and pensions secretary Rachel Reeves said: "Every new job is welcome, but under David Cameron long-term youth unemployment has doubled and working people are facing a cost-of-living crisis are £1,600 a year worse off.

"High levels of youth unemployment are wasting the skills and talents of our young people and costing taxpayers £330 million every year.

"The Prime Minister must do much more to tackle the high levels of youth unemployment across the country by implementing Labour's compulsory jobs guarantee to get the long-term unemployed off benefits and into work."