A LEADING business group called on North-East expertise ahead of a new report today (Monday) in which it outlines measures to tackle unemployment, particularly amongst young people.

The CBI has called on the Government to introduce a new tax incentive to encourage companies to take on young unemployed people, as part of the package of measures.

The report, called "Action for jobs: how to get the UK working", calls for a new Young Britain Credit worth £1500 for firms taking on an unemployed person aged between 16 and 24 years.

This would cover the first year's National Insurance for employers.

Other proposals include creating around 450 business ambassadors, one for each local area, to strengthen links between schools and businesses, introducing a comprehensive "readiness for work" assessment for every unemployed person and suspending, rather than completely cancelling benefits when someone initially takes a job to reduce the perceived risk of taking a short-term post.

Sarah Green, CBI North East Regional Director, said: "We have undertaken extensive consultation with businesses in the North East to feed into this report, through Chair of the project steering group, Ken McMeikan (Greggs chief executive) and through specific regional events.

"Businesses in the North East recognise the huge structural challenges the region faces in employment but equally know that there are opportunities available for those with the right skills and mindset. "They are keen to do something about it and we will be working with members over the coming months to help deliver on some of the key recommendations of the report."