BCC warns of jobs cuts due to new rules and regulations

According to recent research published by the British Chambers of Commerce (BCC), pending regulations and taxes will cost businesses over £26bn over the next four years, potentially slowing down economic recovery and halting new job creation.

The new report conducted by the BCC states that 18 new British employment and tax regulations set to take force before 2014 will put strain on companies' finances which could be spent on creating new jobs.

Director General of the BCC, David Frost, stated that businesses need to be given a chance to lead the UK out of recession. The costs of employing staff need to be reduced if the Government are serious about giving business free-reign to create jobs and drive our economic recovery.

The British Chambers of Commerce are asking for a three-year freeze on all new employment legislation, urging the Government to take lead in campaigning for an EU delay to the introduction of regulations.

Mr Frost wants the Government to start the process by abolishing the planned increase in National Insurance in 2011. The 1 per cent increase in employer National Insurance planned for April2011 alone will cost companies over £14bn and would significant hinder recovery and job creation.

Job Centre Vacancies says: It is highly unlikely that the Government will reverse its National Insurance decision as it looks to raise more tax income. It's a double-edged sword, not increasing taxes will put Britain in more debt as its borrowings escalate. However, increased red tape and higher taxes will have a negative effect on Britain's economic growth.

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