Brown launches jobs plan as 3,000 more face the dole

Businesses offered £2,500 bonus for recruiting and training unemployed staff.

A pledge by Gordon Brown to limit the pain of the recession by getting the unemployed back into work was overshadowed by a "Black Monday" of job losses throughout British industry.

Businesses and economists expressed doubts about the Government's plan to offer firms a "golden hello" of up to £2,500 for recruiting and training someone who has been unemployed for six months. They warned that the main question for most firms was whether to cut jobs. Their doubts were vindicated when more than 3,000 redundancies were announced yesterday, including 684 at JCB and 367 at Waterford Wedgwood.

Administrators were called in at Land of Leather, where 850 jobs are under threat, and the Findus frozen foods company Newcastle Productions, where 420 are at risk. The logistics firm Wincanton may axe 875 jobs and Christie's, the auction house, said it faced "significant staff reductions".

Downing Street insisted that more than 200,000 jobs were being created each month and there were 500,000 vacancies in the economy. Morrisons, the supermarket chain, announced it would recruit 5,000 staff this year.

Mr Brown promised to get credit flowing to companies through "non-bank institutions" as well as banks. "We are looking at every possible avenue by which the different functions of banks can be brought back into being," he stated.

A package of government-backed loan guarantees for small firms is expected tomorrow, with selective help for medium and large companies, including the car industry, to follow next week. Export credit guarantees may be expanded.

At a jobs summit in London, the Prime Minister pledged he would not abandon the jobless so they became long-term unemployed. "He predicted that yesterday's £500m package would help 500,000 people into work or training over the next two years.

Mr Brown told a meeting of Labour MPs last night: "We will not walk by on the other side.When challenged by the most difficult circumstances, we will not only prove ourselves, we will prevail."

A Populus poll for today's (tues) Times shows the Tories have increased their lead over Labour to 10 points. While people are pessimistic about the economy, they are more upbeat about their own prospects.

Richard Jeffrey, chief investment officer at Cazenove Capital Management, warned that Britain could experience a "jobless recovery" in which unemployment continued to rise slowly even when the economy was growing again. He said high public borrowing and tax rises could mean slow growth rates. He doubted that the "golden hellos" would mean any net addition to jobs. "Firms won't employ extra people just because of a small subsidy," he said.

David Frost, director general of the British Chambers of Commerce (BCC), said: "Companies are not recruiting so I am not sure at this stage in the economic cycle what the offer of a £2,500 grant to take on people is going to do."

In a survey published today, the BCC warned that there was a "frightening deterioration" towards the end of last year and it that would almost certainly revise downwards the forecast it made only two weeks ago. It said: "The priority for now should be helping businesses keep jobs."

The election-style battle between the parties on the economy intensified when David Cameron unveiled an emotive poster of a baby to highlight rising government debt. The caption says: "Dad's nose. Mum's eyes. Gordon Brown's debt." The Tory leader said every baby is being born owing £17,000 thanks to Mr Brown. "It's easy for politicians to talk about tax rates and borrowing as if there was no tomorrow – but there is a tomorrow and it is going to be paid for by our children," he said.

But Mr Brown replied: "By the end of this global downturn our debt will still be lower, as a result of what is happening, than in the US, Japan and Italy."

*Up to 6,000 new teachers will earn a £10,000 "golden handcuffs" payment to work in more than 500 underperforming schools, the Government will announce today in a White Paper on social mobility, Fair Chances for the Future. They must stay three years to qualify.

The Banksy image in Folkestone before it was vandalised
Life and Style

Sales of the tablet are set to fall again, say analysts

football West Brom vs Man Utd match report: Blind grabs point, but away form a problem for Van Gaal
Arts and Entertainment
Gotham is coming to UK shores this autumn
tvGotham, episode 2, review
Have you tried new the Independent Digital Edition apps?
ebooksAn unforgettable anthology of contemporary reportage
Arts and Entertainment
Bloom Time: Mira Sorvino
tvMira Sorvino on leaving movie roles for 'The Intruders'
First woman: Valentina Tereshkova
peopleNASA guinea pig Kate Greene thinks it might fly
Brian Harvey turned up at Downing Street today demanding to speak to the Prime Minister

Met Police confirm there was a 'minor disturbance' and that no-one was arrested

Arts and Entertainment
George Lucas poses with a group of Star Wars-inspired Disney characters at Disney's Hollywood Studios in 2010

George Lucas criticises the major Hollywood film studios

Chris Grayling, Justice Secretary: 'There are pressures which we are facing but there is not a crisis'

Does Chris Grayling realise what a vague concept he is dealing with?

Life and Style
A street vendor in Mexico City sells Dorilocos, which are topped with carrot, jimaca, cucumber, peanuts, pork rinds, spices and hot sauce
food + drink

Trend which requires crisps, a fork and a strong stomach is sweeping Mexico's streets

Life and Style
The charity Sands reports that 11 babies are stillborn everyday in the UK
lifeEleven babies are stillborn every day in the UK, yet no one speaks about this silent tragedy
Blackpool is expected to become one of the first places to introduce the Government’s controversial new Public Space Protection Orders (PSPOs)

Parties threaten resort's image as a family destination

Life and Style
Northern soul mecca the Wigan Casino
fashionGone are the punks, casuals, new romantics, ravers, skaters, crusties. Now all kids look the same
Life and Style

I Am Bread could actually be a challenging and nuanced title

Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Year 5 Teacher

£80 - £140 per day: Randstad Education Leeds: Year 5 Teacher KS2 teaching job...

Software Developer

£35000 - £45000 Per Annum Pensions Scheme After 6 Months: Clearwater People So...

Systems Analyst / Business Analyst - Central London

£35000 - £37000 per annum + Benefits: Ashdown Group: Systems Analyst / Busines...

Senior Change Engineer (Network, Cisco, Juniper) £30k

£30000 - £35000 per annum + Benefits: Ampersand Consulting LLP: Senior Change ...

Day In a Page

Two super-sized ships have cruised into British waters, but how big can these behemoths get?

Super-sized ships: How big can they get?

Two of the largest vessels in the world cruised into UK waters last week
British doctors on brink of 'cure' for paralysis with spinal cord treatment

British doctors on brink of cure for paralysis

Sufferers can now be offered the possibility of cure thanks to a revolutionary implant of regenerative cells
Ranked seventh in world’s best tourist cities - not London, or Edinburgh, but Salisbury

Salisbury ranked seventh in world’s best tourist cities

The city is home to one of the four surviving copies of the Magna Carta, along with the world’s oldest mechanical clock
Let's talk about loss

We need to talk about loss

Secrecy and silence surround stillbirth
Will there be an all-female mission to Mars?

Will there be an all-female mission to Mars?

Women may be better suited to space travel than men are
Oscar Pistorius sentencing: The athlete's wealth and notoriety have provoked a long overdue debate on South African prisons

'They poured water on, then electrified me...'

If Oscar Pistorius is sent to jail, his experience will not be that of other inmates
James Wharton: The former Guard now fighting discrimination against gay soldiers

The former Guard now fighting discrimination against gay soldiers

Life after the Army has brought new battles for the LGBT activist James Wharton
Ebola in the US: Panic over the virus threatens to infect President Obama's midterms

Panic over Ebola threatens to infect the midterms

Just one person has died, yet November's elections may be affected by what Republicans call 'Obama's Katrina', says Rupert Cornwell
Premier League coaches join the RSC to swap the tricks of their trades

Darling, you were fabulous! But offside...

Premier League coaches are joining the RSC to learn acting skills, and in turn they will teach its actors to play football. Nick Clark finds out why
How to dress with authority: Kirsty Wark and Camila Batmanghelidjh discuss the changing role of fashion in women's workwear

How to dress with authority

Kirsty Wark and Camila Batmanghelidjh discuss the changing role of fashion in women's workwear
New book on Joy Division's Ian Curtis sheds new light on the life of the late singer

New book on Ian Curtis sheds fresh light on the life of the late singer

'Joy Division were making art... Ian was for real' says author Jon Savage
Sean Harris: A rare interview with British acting's secret weapon

Sean Harris: A rare interview with British acting's secret weapon

The Bafta-winner talks Hollywood, being branded a psycho, and how Barbra Streisand is his true inspiration
Tim Minchin, interview: The musician, comedian and world's favourite ginger is on scorching form

Tim Minchin interview

For a no-holds-barred comedian who is scathing about woolly thinking and oppressive religiosity, he is surprisingly gentle in person
Boris Johnson's boozing won't win the puritan vote

Boris's boozing won't win the puritan vote

Many of us Brits still disapprove of conspicuous consumption – it's the way we were raised, says DJ Taylor
Ash frontman Tim Wheeler reveals how he came to terms with his father's dementia

Tim Wheeler: Alzheimer's, memories and my dad

Wheeler's dad suffered from Alzheimer's for three years. When he died, there was only one way the Ash frontman knew how to respond: with a heartfelt solo album