Gordon Brown: Industry must help on jobs

Chancellor Summons Business Leaders

Mr Brown used the meeting to launch the Government's plan to "rebuild the welfare state around the work ethic." It involves spending £3 billion of windfall taxes on the privatised utilities to help fund jobs for young people who have been unemployed for more than six months.

The Chancellor made it clear that young people will face benefit cuts if they refuse offers of work under the initiative.

"Rights will be matched by responsibilities," said Mr Brown. "The new opportunities will carry with them obligations to take them up. We are prepared to be tough where nexessary to get young people back into the working environment."

Getting a quarter of a million under-twenty-five-year-olds into work using the windfall tax was one of Labour's main election promises.

Those targetted under the scheme are to be given four options, ranging from a subsidised private sector job to working for voluntary organisations.

The government will also offer a £75 tax rebate for a six-month period to encourage firms to offer jobs to the long-term unemployed.

Business reporter Karan Hoggan reports on the plans, and their reception