BCC: Red tape threatens recovery

According to the Times, which has been given early access to a BCC report, 18 new tax and employment regulations will come into force between now and 2014. The group expects them to cost firms £25bn.

This time the government cannot claim that its hands are tied by laws emanating from Europe, just two of the new regulations are European Union measures.

David Frost, director-general of the BCC, said that businesses required ministers to “get off their backs…The cost of employing people must be reduced if future governments are serious about giving businesses the freedom to create jobs and drive our economic recovery.”

Tomorrow, official figures are expected to reveal that the number of people without work in the UK has passed the 2.5 million mark for the first time since Britain exited its last major recession more than 15 years ago.

Research by HR consultancy Hay Group found that quarter of businesses that froze pay last year plan to do so again in 2010. Frost called for a freeze in new business laws across the EU and demanded more help from the government for struggling businesses.

“A good start would be to abolish the planned increase in national insurance in 2011 – it’s a tax on jobs and will hinder recovery,” he added.

Related articles:Recession almost inevitable, says BCC

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