Page last updated at 14:36 GMT, Monday, 14 June 2010 15:36 UK

Labour warns on impact of cuts to jobs fund

The government's decision to abandon further investment in Labour's Future Jobs Fund will cost 94,000 jobs, shadow work and pensions secretary Yvette Cooper has claimed.

At question time on 14 June 2010, Ms Cooper argued that ministers were "cutting support for the jobless at a time when they need it most".

But Work and Pensions Secretary Iain Duncan Smith said it was "ludicrous" to assume that the Future Jobs Fund would have boosted employment to the extent that Ms Cooper predicted.

"First of all, she's posing notional figures of jobs she might have got had this thing actually worked against jobs that we believe are likely to be there - so it's a silly game that's being played out," he told MPs.

In heated exchanges, he added: "Whether she likes it or not, had she got into government - heaven help us - she would have had to have cut back on various budgets as her own government of the time said that they would."

Mr Duncan Smith accused Labour of going on "a spending spree like drunks on a Friday night".

He concluded: "We've all got the hangover now."

Our apologies for the technical problems at the start of this clip.


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