Labour's plans to get people off benefits and into work are set to fail given the party's anti-business agenda, an MP has claimed.

Mp for Tatton, Esther McVey, said the decision to increase employer national insurance contributions coupled with rises in wages and business rates, had already seen some businesses close and others lay off staff.

Speaking in Parliament as government outlined its plans to reduce the benefits bill, Ms McVey said: "How precisely will these benefit cuts be realised, given this government's anti-business budget which has seen businesses close at the fastest rate since Labour was last in office, and of those still standing 30 per cent are planning to cut staff to cope with the increase in employer's national insurance contribution. Where are the jobs? We know Labour is the party of the magic money tree, is it now the party of the magic jobs tree too?"

Ms McVey said she knew better than most how difficult it was to get people into work having spent many years as a government minister in the Department for Work and Pensions.

She said plans outlined by the previous Conservative government were repeatedly met with opposition from Labour, despite record numbers of employment and numbers of people working increasing by more than 1,000 a day.

She said she fully supports getting people into work, given both its benefit to the individual and the economy, but said without supporting businesses to create employment opportunities it was impossible.

Ms McVey said: "This is just another ill-thought through policy by Labour and shows the party has no understanding of how jobs are created.

"We need to be supporting our businesses and doing everything we can to help them grow so there are opportunities for people to work."

Work and Pensions Secretary Liz Kendall said: "We are overhauling our approach in the DWP as only one in six use job centres to recruit.

"We want to have a single account manager for all businesses, and we are going to make sure job centres are much more embedded in our local communities, so they have detailed knowledge of individual employers. That is the way we can get Britain working and growing again."

The comments came as Ms Kendall announced changes to the welfare system which government claim will save £5 billion by the end of 2030.

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