The Conservative’s have proposed giving companies a £2,500 tax break for every new worker they take on who has been unemployed for more than three months.

Responding to the proposal, Director General of the British Chambers of Commerce, David Frost, said:

“With unemployment continuing to rise sharply, companies are not in a position to think about recruiting new staff right now. Businesses are shedding staff.

“Cashflow is of primary concern to businesses at the moment. This policy announcement would have been a valid welfare to work initiative in better times, but it is not a survival tool for small businesses during a severe downturn.”