A £1bn scheme to encourage businesses to expand has been declared a “total flop” as it emerged it had cost more to run than it delivered in additional growth.
The National Insurance holiday scheme established by the Government last year with the aim of helping create 400,000 new businesses within three years has so far helped only 5,137 companies, according to analysis by Labour.
Ed Balls, the Shadow Chancellor, said the review of the scheme’s work so far showed the added benefit it had provided totalled just £10.3m, £1.7m less than the cost of running the scheme.
This article appeared in The Telegraph 31st July 2011.