Report claims splits are emerging in coalition

The British Chambers of Commerce said a survey of 150 MPs found "clear discrepancies" on how to help firms create jobs and aid the UK's "fragile" economic recovery.

Almost nine out of 10 Conservative MPs felt that the balance of employment law had shifted too far towards the employee, but seven out of 10 Liberal Democrats disagreed.

Almost two thirds of Tories were in favour of appointing a full-time trade minister to "bang the drum" for British companies overseas, but half of LibDems disagreed.

Seven out of 10 members of Nick Clegg's party wanted spending on infrastructure to increase, compared with fewer than a third of Conservatives.

David Frost, Director General of the BCC, said: "While the coalition Government has made important strides to improve the environment for business during its first few months in office, we are concerned about some of the gaps opening up between ministers and their parliamentary parties.

"As Vince Cable's business department conducts a major review of employment law, with the goal of making it easier for businesses to take on staff, it's worrying to see that 71% of Lib Dem back-benchers seem to think that the current amount of red tape facing employers is acceptable.

"This is a critical week for Nick Clegg and Vince Cable to re-state the importance of business growth to their party colleagues. The UK's economic recovery depends on a stable government with the backing for policies that put enterprise growth first."