A JOBS scheme that helped hundreds of out-of-work young people in Swindon will be axed under Government moves to slash billions of pounds from the national debt.

The Future Jobs Fund, which helped create minimum wage jobs for 18-24-year-olds who had been out of work for at least six months, will be wound up once contracts have run their course, ministers said.

The Fund was used by Swindon Borough Council and English Heritage to create up to 454 temporary jobs in the town, in the hope that many would stay on with their new employer or use their new skills to help them into other work.

But the Liberal-Conservative coalition said it wanted to save £320m from ending “ineffective elements of employment programmes”, which included “ending further rollout of temporary jobs” through the Future Jobs Fund, as part of plans to cut £6bn of public spending in 2010/11.

The decision, which will remove one potential route to work for the 1,220 young people currently claiming Jobseeker’s Allowance in Swindon, was taken after ministers were advised it was offering relatively poor value for money.

Justin Tomlinson, Conservative MP for North Swindon, said of the cuts: “For too long the deficit has been spiralling out of control, with debt repayments exceeding our education and defence budgets.

“This urgent and decisive action is essential to keep our interest rates lower for longer, restore confidence in the economy and protect employment.”

Local businesses will not create much-needed jobs in Swindon unless the national economy is on a sound footing, so I welcome the Government's action.”