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John Denham has hit out at the Coalition Government's decision to hinder business start-ups in Southampton - whilst new businesses starting in Bournemouth or other parts of Dorset will not have to pay National Insurance contributions on their employees firms in Southampton are being denied this assistance.
Mr Denham said:
"The unemployment rate in Southampton is higher than in Dorset, so why are new businesses in the city being disadvantaged by the Tory-Lib Dem Government in this way?
"Over the past few weeks I have been lobbied on this issue by business organisation across Hampshire, including the FSB, and Chambers of Commerce, and the Tory run Hampshire and Southampton Councils. All have been treated with contempt by the Coalition Government
"It is not clear that a National Insurance Holiday is the best way to encourage new businesses, but, as long as this is part of the Coalition Government's plans, all parts of the country should be treated equally."
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