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Government plans risk future job creation, says Chamber

New figures may show that unemployment levels have remained relatively unchanged across the East of England over the last quarter but the Chamber has warned that the government is doing little to encourage job creation as the region's businesses will be hit with a bill for over £2.6 billion if it goes ahead with plans to introduce multiple new employment regulations and increased taxes over the next four years. Despite many companies still facing difficult trading conditions a blizzard of fresh red tape and taxes directly related to employment are planned between April 2010 to April 2014 with eight major changes earmarked for 2011 alone. Research carried out by the British Chambers of Commerce (BCC), the national counterpart of Cambridgeshire Chambers of Commerce, shows that the 1 per cent increase in employer's national insurance contributions planned for April 2011 will cost businesses in the region over £1.4billion. Other costly regulations in the pipeline include the Equality Bill will have a one-off cost to businesses across the UK of £190million, the Agency Workers Directive in 2011 which will have an annual recurring cost to UK business of £1.5billion and a year later the Pensions Reform which will have an annual recurring cost to business of £4.8billion. Commenting on the figures John Bridge OBE, Chief Executive of Cambridgeshire Chambers of Commerce, 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 sizable burden on business. 'From what local employers are telling the Chamber 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. 'The new figures show that compared to the other regions across the UK the East remains in a positive position, coming second only to the South East in terms of low unemployment rates and high employment rates. But that doesn't mean businesses are out of the woods yet and if the government wants businesses to grow then it needs to start giving them its backing.'

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Release date:  20 Jan 2010

Copyright Cambridgeshire Chamber of Commerce 2010