Trade unions derided the Chancellor's announcement yesterday of an employment allowance that will allow some employers to avoid paying national insurance contributions (NICs).
From 2014, every business will be able to employ one worker on a salary of £22,400, or four employees on the minimum wage, without paying any employer NICs.
George Osborne claimed it was taking tax off jobs and would particularly help small businesses which wanted to hire their first employee or grow their workforce.
But the Scottish TUC questioned whether the allowance would generate new jobs, given that the problem is low demand for goods and services.
"It also provides another opportunity for avoidance as employers will now look to split companies into separate units," said general secretary Grahame Smith.
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