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Businesses to be given incentives to take on long-term jobless

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Scottish businesses will be paid to hire people struggling to find work as part of a £10 million jobs boost.

Tory finance spokesman Derek Brownlee said he was “delighted” by the announcement.

“Scotland will only emerge from the depths of Labour’s debt legacy by growing the private sector,” he said. “Therefore the concession gained by the Scottish Conservatives on employment for small and medium sized businesses is to be welcomed.”

Labour finance spokesman Andy Kerr said he was pleased the government had taken steps to help businesses, but it was “four years too late”.

“You have to question the sincerity of the SNP’s commitment when unemployment has soared under their watch,” he said. “But it is only now, 30 days before the election campaign, that they are coming forward with policies to support business.”

But the move was welcomed by the SNP’s Dundee West MSP Joe FitzPatrick, who said, “The news is yet more evidence that the SNP government is working for Scotland with our focus on creating jobs and economic opportunities for the people of Scotland.”

Under the scheme, employers will be offered a £1000 incentive to recruit someone who has been unemployed for longer than six months and participated in a training programme run by Skills Development Scotland.

Small businesses challenged by meeting staff costs will also be offered extra help and new export businesses will be given advice and training.

Finance secretary John Swinney said up to 5000 people will be helped into employment by the measures aimed at small and medium-sized companies. The Scottish Government will also provide assistance with hiring employees and give extra support to Scotland’s exporting companies.

Mr Swinney outlined the measures on Tuesday after including the funding in next year’s Budget under a deal to win the support of the Scottish Conservatives.

“For a sustained period, Scotland has been the only nation in the UK with rising employment and falling unemployment,” he said.

“While this is encouraging, and reflects the decisive and comprehensive action the Scottish Government has taken to support jobs, there can be no let up in our efforts to help people into work.

“That is why, as part of the Budget process, and building on discussions we had to build to consensus, I have been able to provide further crucial funding to provide a package of support that will create thousands more new opportunities for people across Scotland.

“This £10 million fund will help provide an incentive for companies to take staff on, it will provide crucial cash to help meet the cost of hiring more employees, and it will also be targeted at our exporting companies a crucial area which has helped lead the recovery we have seen across Scotland.

“In all, it is investment that reflects our clear priority of investing to support economic recovery and will support up to 5000 new jobs for individuals.”