Wednesday, 4 January 2012

Coalition's Small Business Job Creation Scheme Flops

The coalition’s flagship job creation scheme has cost more to administer in its first year than the support it provided, Treasury figures show.

Just 12,400 jobs claiming tax breaks under the £940m national insurance scheme holiday scheme have been created in its first 13 months of operation, costing £6m. The three-year scheme has so far cost £12m to set up and administer. It had been claimed the scheme would create 800,000 new jobs.

Mr Osborne had said the scheme would help stimulate private sector activity in parts of the country experiencing the heaviest cuts in public expenditure. However, businesses in London, the South East and East of England are prevented from applying to focus the incentives on the rest of the country.

Labour say the Government should extend the scheme to all businesses creating new jobs for one year so that it was fully utilised.

No comments: