20/01/2009 - Regulations cost blow to business
British business faces £1 billion a year in new regulations costs, effective in the coming months, which company bosses claimed would lead to job losses.
Research by the Institute of Directors (IoD) showed that struggling firms were just months away from costly and "ill judged" legislation.
Miles Templeman, director general of the IoD, said: "Not long ago, the Government was talking about a temporary freeze on new regulation as a means of helping businesses through these incredibly difficult times.
"However, despite the business friendly rhetoric, the Government's own figures indicate that ministers are in regulatory overdrive."
The group indicated the strain included £555 million on training, £319 million on business rates, £70 million on gender pay audits and £61 million through an extension to flexible working.
The Government's stance that the measures had benefits which would offset many of the costs, was not accepted by the IoD.
Mr Templeman said: "The introduction of £1 billion of extra employment entitlements, pay audits and business rate supplements at a time of acute difficulties for business is a massive error.
"The Government has urgently to rethink policies like the Business Rate Supplements Bill and proposals around time off entitlements, if it is really serious about helping businesses through the recession. The economic impact of these regulations will be felt in lost jobs."
Copyright © Press Association 2009
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