Work and Pensions Secretary Iain Duncan Smith has urged UK businesses to "give a chance" to unemployed young Britons, rather than relying on foreign workers.

In a speech in Spain he said a "realistic promise" of work formed part of the government's "contract" with the British people. Business groups said firms needed the "best people" and migrants often had a better work ethic and skills.

And Labour said what was needed was "proper action" rather than talk. Under European Union labour laws, most EU citizens can work in the UK without restriction.

The government has introduced a cap on the number of skilled workers from outside the EU, in an effort to reduce net migration from about 200,000 a year to the "tens of thousands". In a speech to the Spanish Foundation for Analysis and Social Studies in Madrid, Mr Duncan Smith said that more than half of newly filled jobs in the last year were taken by foreign...Read more on this story: BBC News - Duncan Smith urges firms to hire unemployed Britons