David Cameron has proposed giving tax cuts to employers who hire new workers, in a move that will create an estimated 350,000 new jobs over the next year.

Tax cuts worth £2,500 per person, per year would be given to employers who hire new workers who have been unemployed for three months or more.

£2.6 billion of tax breaks would be given to employers in total – and this would be paid for using the money saved on welfare payments.

The scheme would create new jobs, boost the economy and reduce the damaging social costs associated with unemployment.

And, because it would be funded from lower spending on unemployment benefits, it would be revenue neutral overall for the Government.

David called on Labour to adopt this scheme as soon as possible, stressing, “Instead of the Government paying for people to be unemployed, it can pay for them to be in work.”

He said there was a “clear choice” between unfunded “tax cons” from Labour and fully funded tax cuts from the Conservatives, and outlined our other proposals to help Britain’s families and businesses:

• A 2-year council tax freeze, paid for by cutting back on government advertising and consultancy fees
• Taking the family home out of Inheritance Tax and nine out of ten first-time buyers out of Stamp Duty by introducing a levy on non-domiciles
• Allowing small businesses to delay their VAT payments by 6 months
• Cutting payroll taxes for the smallest companies