Shadow Chancellor George Osborne has announced that, as part of our plan to Get Britain Working, he will abolish tax on the jobs created by new businesses in the first two years of a Conservative government.

Osborne said that any new business started in the first two years of a Conservative government will no longer pay employer national insurance on its first 10 recruits during its first year.

The Tories predict that the move will generate around 60,000 additional jobs over two years.

Tom Hadley, director of external relations at the REC, told Recruiter: “For small businesses, it could act as an incentive to kick-start recruitment activity which would be good for our members.

“From an recruitment agency’s perspective, a lot of agencies have had to make cuts. When the recovery comes, they will have to start recruiting. It could help with how recruiters resource themselves as a lot of agencies are small businesses themselves.”