What comes first finance or employment?
Gordon Brown's £500 million scheme to get the long-term unemployed back into employment has prompted a very simple question, what comes first, finance or employment?
The very laudable scheme could well be weakened by the fact that business finance is very thin on the ground and more and more businesses in the UK are struggling to keep their operations ongoing. It therefore seems near financial suicide to pay businesses to take on new staff when the businesses which are taking on these staff are unable to finance themselves at the moment. Is this just a total waste of money?
There is concern that no matter how good the intentions of Gordon Brown and his government the £500 million scheme could hit the buffers in a very short space of time. What is the point of paying companies to take on extra staff if they are not able to look after their own staff at the moment and are struggling financially?
A £2500 payment for taking on a new member of staff would probably help financially but long-term this is fairly insignificant. The key to success and refloating UK economy is the banks and business finance which has been very difficult to come by of late.
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