The British Chambers of Commerce (BCC) is calling for an ‘urgent and sweeping review’ of business regulations, after it was revealed that red tape cost UK firms £88.3 billion last year.

According to the BCC’s Burdens Barometer, the regulatory burden climbed by £11bn in 2009 following the introduction of 40 additional laws. Although 21 of these led to a recurring annual benefit for companies, the BCC said that this resulted in a new, annual recurring cost to business of over £1bn.

The lobby group is now urging the new coalition Government to conduct a review of all regulations that incur costs for business and introduce a ‘moratorium on new employment laws until at least 2014.’

‘During this critical time for the economy, we need businesses to be driving recovery and creating jobs. But, the Government must play its part by putting the brakes on the relentless flow of red tape,’ commented David Frost, BCC Director General.

‘Tuesday’s Queen’s speech is the perfect opportunity for the new Government to prove its commitment to job creation and a better business environment by repealing regulations where it’s clear the costs outweigh the benefits to the economy and society.’

The Conservative Liberal Democrat coalition Government has said it is committed to reducing the volume of regulation to help ease the strain on UK firms.