A survey by the National Audit Office, and supported by recruiters, found 40% of businesses were spending longer dealing with red tape.

The survey said businesses were spending longer filling in forms and keeping up to date with legislation. Just 1% said they were spending less time doing such activities.

In a report on the deregulation campaign, published today, the National Audit Office also cast doubt on the government’s figures for the potential savings from its measures to streamline regulation, and said Whitehall departments had already added another £400m to the cost of dealing with red tape.

Recruiters have sat on working groups for the campaign.