Anticipated employment regulations and taxes will hit the UK with a bill of £25.6bn, hampering job creation and recovery, according to the British Chambers of Commerce (BCC).

Changes directly related to employment planned between April 2010 to April 2014 include:

• 2010: The Equality Bill : a one-off cost to business of £190m
• 2011: The Agency Workers Directive: an annual recurring cost to business of £1.5bn
• 2012: Pensions Reform: an annual recurring cost to business of £4.8bn

David Frost, director general of the BCC, says: “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 employers tell me, 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.”