Jobless figures 'are only going to get worse'

The Centre for Economics and Business Research predicts that Scotland could see its unemployment rate hit 9.7 per cent by 2016, the highest rate since the recession of the early 1990s, and in Wales unemployment could reach 10.5 per cent, the highest since records began in 1992.

North-east England, which heavily depends on public-sector jobs, is also expected to be badly affected.

The report also found that the south-east and east of England and London are the only regions likely to see unemployment drop.

Report author Rob Harbron forecast "five more years of pain" across Britain "with unemployment continuing to rise in almost every region.

"Family budgets are being squeezed between the pressures of rising unemployment, low earnings growth and stubbornly high inflation."

Left Economics Advisory Panel co-ordinator Andrew Fisher told the Star: "The mounting evidence is now incontrovertible. Austerity is failing all around Europe and voters are rejecting it.

"There is now a huge responsibility and urgency for Labour to start putting forward a clear alternative."