OPPRESSIVE RED TAPE IS STRANGLING ECONOMIC GROWTH’
PUBLISHED: 10:28 28 July 2006 | UPDATED: 10:34 06 May 2010
BUSINESS leaders are urging the Government to cut the oppressive regulatory burden because red tape is strangling economic growth in the UK. The British Chambers of Commerce (BCC) said there was a tentative upturn in business confidence between April an
BUSINESS leaders are urging the Government to cut the 'oppressive regulatory burden' because red tape is strangling economic growth in the UK.
The British Chambers of Commerce (BCC) said there was a tentative upturn in business confidence between April and June, but warned that the recovery was very fragile.
BCC director general David Frost said: "The Government must carry out its promise to reduce the oppressive regulatory burden and make it clear that additional tax increases on business will not be contemplated."
He added that a hike in interest rates by the Bank of England - expected by economists before the end of the year - will hit business confidence and further stifle economic growth.
Mr Frost said constant changes in labour laws were the main cause of concern for business, particularly in relation to maternity and paternity leave.
"For small companies who do not have the resources to pay for human resources staff to deal with this, it becomes a major burden," said Mr Frost.
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