New rules ‘will cost business £1.6bn’

new employment legislation will cost Yorkshire companies more than £1.6bn between now and 2015, a business organisation warned last night.

The Leeds, York and North Yorkshire Chamber of Commerce said it is “absurd” for the Government to introduce burdensome regulation at a time of high unemployment.

Chamber president Shaun Watts said incoming laws will cost UK plc £23bn and called on ministers to make it easier for companies to take on new staff.

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In a speech to nearly 600 business leaders, he questioned how the Government’s planning reforms could be both pro-business and fit with the coalition’s localism agenda.

Mr Watts urged the introduction of more tax incentives to boost investment in people, machinery and innovation and called on banks to return to locally-based decision making.

“There is no point being able to borrow money only if you can prove you don’t need it,” he said.

Mr Watts, who is standing down as chamber president to be replaced by York businessman Richard Flanagan, welcomed “positive but small” developments in the Budget, including the removal of some business regulations.

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“The Chamber firmly believes that more robust action is still needed,” he added.

Allan Leighton, who held top jobs at Asda and Royal Mail, was keynote speaker at last night’s annual chamber dinner at the National Railway Museum in York.