Tories plan tax break for hiring jobless

Date: 11th November 2008

The Conservative Party has proposed giving a £2,500 taxation break to companies which hire employees from the jobless register.

In an interview with the BBC's Breakfast television programme, the party's leader David Cameron claimed that offering businesses the discount on national insurance would both reduce unemployment and curb the affects of recession.

According to Mr Cameron, there are currently 1.8 million unemployed people in the UK, with Jobseeker's Allowance personally costing the taxpayer £8,000 every year.

Mr Cameron told the BBC: "Instead of spending … money on unemployment benefit … spend it on giving companies a tax break to take people off the unemployment register.

"If a company takes on somebody that has been unemployed for three months, they get … £2,500 knocked off their national insurance bill. That helps companies to hire people."

The Conservative leader's comments represent that latest move in a 'tax battle' between the two major parties, with foreign secretary David Miliband recently stating it was "game on" between the political heavyweights.