Partner Article

Red tape and taxes to hinder North East recovery

New legislation coming into force over the next three years will add £819m in new costs to North East businesses as they fight their way out of one of the worst recessions on record, according to new research.

The figures released by the North East Chamber of Commerce (NECC) illustrate how the European and UK governments are “tying one arm behind the backs of businesses” in a way that will harm their ability to grow and recruit new staff.

Ross Smith, NECC head of policy, said: “Over the next three years, there will be a wave of red tape and taxes that threatens to engulf businesses at a time when they need to focus all their resources on growing the fragile economic recovery.”

The NECC believes that some of the biggest burdens facing employers are:

• National Insurance Contributions (NIC) increases which will have an annual impact of £150m
• Pensions Reform will add £154m annually
• The new Agency Workers Directive will cost companies £48m each year
• A further 11 individual pieces of legislation are also due between now and 2013.

Ross Smith said: “We are not opposed to all of the legislation due to come into force but there has to be questions marks over the timing of it. Everyone responsible for implementing these changes has to ask themselves will this help or hinder the economic recovery at every stage. If they will take the fire out of the economy then they must be suspended or scrapped.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .