Gordon Brown stands accused today of misleading the public over his much-vaunted plans to help young people through the recession. Leaked documents show the government is planning drastic cuts for its flagship plan to train a new generation of apprentices.

Confidential papers obtained by The Observer show that, while Brown and his ministers have suggested they are raising investment in training, skills and apprenticeships, behind the scenes they are preparing some £350m of cuts for 2010-11 that will slash the number of training places on offer by hundreds of thousands.

Last night business groups, unions and opposition parties accused the government of duping young people - and businesses that train them in return for state help with funding - into believing it is investing more during the downturn, when the reverse is the case.

The cuts represent part of the £5bn in immediate spending reductions across all departments promised by Alistair Darling at his April budget, which the Treasury insisted would not compromise front-line services. The leaked documents show, however, that these cuts will severely limit help for young people seeking training and qualifications - and will raise fears that other core services such as schools and hospitals will also suffer