Business leaders want new laws put on hold (From Evesham Journal)

Business leaders want new laws put on hold

2:10pm Sunday 24th January 2010

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COUNTY business leaders are backing a national call for a three-year suspension of new employment laws which are due to be phased in across the UK this year.

New research from the British Chambers of Commerce shows that forthcoming employment regulations and taxes will cost UK businesses £25.6 billion over the next four years, which could have a negative impact on future job creation and economic recovery.

More than half – £14 billion – comes from employer National Insurance contributions, which will see a 1 per cent increase from April next year.

Some of the most costly regulations in the pipeline include the Equality Bill which will have a one-off cost to businesses totalling about £190 million.

From next year, the Agency Workers Directive will have an annual recurring cost to businesses totalling £1.5 billion, while the pensions reform will have an annual recurring cost of £4.8 billion. That is due to come into effect in 2012.

Herefordshire and Worcestershire Chamber of Comm-erce (HWCC) is supporting the national campaign by the British Chambers of Commerce for a three-year moratorium on the new employment laws. It claims this would allow the upcoming regulations to bed in, promote job creation, and help drive economic recovery.

Gary Woodman, policy and education manager at HWCC, said: “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.

“What must not happen after a general election is that a new government, from whatever party, comes to power and decides to add to this already sizeable burden on business.

“From what employers tell me, they will get on with creating jobs and wealth, but they simply need government to get off their backs and let them do it.

“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.”

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