THE Shadow Chancellor brought his five-point plan for jobs to Southampton last night and told traders they would get a National Insurance break and VAT cut under Labour.

Ed Balls said he recognised small businesses in the region, particularly in Southampton, who have been excluded from the Government’s three-year NI holiday were “hurting too”

and needed help.

He told traders in Bedford Place with rising unemployment, a flat-lining economy and sinking consumer confidence, the most important thing was to get more people in work.

Long-term youth unemployment has more than doubled in Southampton since the start of the year and Mr Balls said the city’s businesses should be treated equally with the rest of the country.

Speaking to a gathering of traders and party supporters in Yoma Kitchen, Mr Balls said he would roll out a one-year national insurance tax break for every small firm in the region which takes on extra workers to help them to grow and create jobs.

Mr Balls, who was joined by city MPs John Denham and Alan Whitehead, added the Government’s VAT hike in January from 17.5 to 20 per cent had come “too early” and “hit everyone too hard”.

He said reversing the cut for one year would cost around £12 billion but said it would more than repay itself in boosting spending which would benefit struggling businesses in Southampton.

“The fact there is more purchasing power will translate into more spending power,” he said.

Traders generally welcomed the proposals although many seemed unsure they would have much effect on their businesses.

They were more concerned with footfall lost to the city centre, high council parking charges and business rates, which Mr Balls agreed needed to be addressed.

He said the city council needed to recognise that its charges had a “huge impact”

on the wider city economy.

Bedford Place Traders Association chairman Catherine Wright said small businesses wanted to be treated as partners rather than a “cash cow”.

Mr Balls said there needed to be a balance between cutting the deficit and action now to grow the economy and outlined Labour’s other policies for job growth including a £2 billion tax on bank bonuses to fund 100,000 jobs for young people – which they would be required to take-up – and build 25,000 more affordable homes Also a one-year cut in VAT to five per cent on home improvements, repairs and maintenance, and bringing forward long-term investment projects in schools, roads and transport to get people back to work and strengthen the economy.