The Federation of Small Businesses (FSB) has warned against closing the current Graduate Intern Scheme in March. The successful scheme has overseen 8,500 graduates take up paid internships with small businesses since its introduction in February last year, however it is due to end in March 2011.

John Walker of the FSB commented

"The current Graduate Internship Scheme has proved highly successful, with some interns going on to start their own companies and others being offered full-time positions with the business they interned for.

"The investment needed to keep the scheme going would be more than outweighed by the contribution that the Treasury would see in reduced benefits payments and the increased tax-take from those that gain employment as a result of the internship.

"The UK's young people are the suture of the economy, yet we are seeing youth unemployment approaching one million. It is time that the Government invested into this vital sector so that we don't see a generation of youngsters consigned to the dole queue."