The British Chambers of Commerce (BCC) has called for the government to provide incentives for businesses to base operations in deprived areas.

Speaking at the body's annual conference, director general David Frost appealed for the introduction of benefits such as tax and national insurance contributions relief for companies which start up commercial enterprises in areas with low unemployment.

Mr Frost argued for the recreation of so-called Enterprise Zones, which were ushered in during the 1980s in order to promote entrepreneurial activities in areas affected by industrial closures.

"Should we not be experimenting in areas with the very worst levels of dependency now . with new style zones," asserted the spokesman for the BCC.

The expert also used his speech as an opportunity to highlight the lack of trained youngsters entering the job market and declared it a "national disgrace" that half of pupils in England leave school without five good GCSEs.

Among the Enterprise Zones created in the 1980s was the Isle of Dogs at London's Docklands area, which attracted investment through tax breaks.