BUSINESSES need a tax break rather than a bribe to boost jobs for youngsters, leaders say.
The Government is offering £3,000 Youth Job Grants to try to tackle the unemployment crisis.
There are more than a million Neets — those aged 16 to 24 not in education, employment or training — in the UK, raising fears of a “lost generation”.
But under Labour, businesses have faced rises in rates and National Insurance costs.
And Steve Perez, who runs Global Brands which makes Hooch and VK, said cutting taxes would let businesses “employ many more young people than trying to bribe firms with their own money to do so”.
He added: “Labour doesn’t seem to understand the best way to boost employment is to allow businesses to keep and reinvest more of what they earn.”
The grant gives firms £3,000 to take on anyone aged 18 to 24 who has been on Universal Credit and out of work for six months.
McDonald’s, Merlin Attractions and Kier Construction all back it. And ministers claim it will create up to 500,000 jobs and training chances.
But an Institute of Directors’ survey found 57 per cent said it would make no difference.
The IoD’s Alex Hall-Chen said to cut youth joblessness, Labour “must reduce costs and risks to business of hiring young people”.
The Government said: “Businesses already receive significant tax breaks for hiring young people through the NI exemption for under-21s.
Targeted subsidies are the most cost-effective way to support employers to get young people into work.”
