Labour accused of 'subsidising jobs' in favour of cutting high taxes on businesses

Shadow Work and Pensions Secretary Helen Whately has accused Labour of "subsidising jobs" despite hitting British businesses with taxes

Speaking to GB News, the Tory MP said: "I speak to businesses who really want to employ young people, but they say they can't at the moment because it's become so expensive to hire young people because of Labour's jobs tax.

"And the Employment Rights Act has made it much riskier to hire young people. There are 200,000 fewer jobs under this Government.

"The answer to this problem is to lighten the load on businesses.

"But what we're seeing from Government is they want to subsidise jobs, they want to fund jobs. They want to pay for young people to look like they're doing a job."

It comes as the Government announced it will expand a taxpayer-funded scheme to help young people into work to include under-25s who have been claiming benefits for a year.

Every eligible 18- to 24-year-old will be "guaranteed" a fully funded, six-month job matched to their skills after 12 months on Universal Credit.

Former Health Secretary Alan Milburn, who is conducting the Government's report into Neets (not in education, employment or training), said that under his recommendations, those who refuse to work and are capable of doing so could lose their benefits.

The review on youth unemployment is expected to be published next week.

The Jobs Guarantee scheme will be rolled out across all areas of Great Britain, including England, Scotland and Wales.

The scheme will help more than 90,000 young people into work by March 2029.

The support is expected to begin at the end of this month.

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