A scheme that has put hundreds of long-term unemployed people into jobs has been extended.

The Government has extended the Action Team initiative run by Working Links in Brighton and Hove for another two years.

Working Links director Sandra Moore said her organisation had helped more than 1,000 people get jobs in the last two years and 350 of them had started new businesses.

The extra jobs represented more than £10 million of increased spending in the area over the last two years.

Ms Moore said: "That is a significant injection of cash and the knock-on effects on local business should make a big difference to the city."

Working Links operates both the city's Action Team and Employment Zone, working in the most disadvantaged areas and with jobseekers who have been out of work for more than two years.

Ms Moore said: "The success of the zone stems directly from our flexible and innovative approach, providing one-to-one support and working closely with other community groups."

The Department for Work and Pensions has announced the extension of the Action Team initiative until 2004.

Under the new contract, disadvantaged people who were not previously eligible for assistance from Working Links will now be able to get help from the Action Team, which will cover Marine, Moulsecoomb, Queen's Park, Kings Cliff, Regency and Vallance wards.

Action Team Brighton manager Graeme Fitzjohn said: "The new contract gives us the opportunity to build on last year's success.

"The original Action Team placed 158 jobseekers into work in under 18 months and we are confident of placing 400 more into work over the next two years.

"This is achievable with the continued support and co-operation of other agencies and referral organisations across the city."

A celebration is being staged tonight at Brighton Racecourse with city council chief executive David Panter as guest speaker.