Tory shadow chancellor, Michael Portillo, clashed with his Labour conterpart yesterday over the government's New Deal programme.

He claimed that the rate of job creation had actually fallen since Labour came to power, and added that the New Deal had had no impact on the creation of jobs for the young.

Chancellor Gordon Brown pointed out that unemployment was at a lower rate than at any time since 1979.

Brown also announced the publication of a consultation paper on plans for a tax credit to encourage SME's to invest in disadvanted communities.

The prime minister yesterday launched a campaign to improve adult literacy levels.