A new report from the British Chambers of Commerce (BCC) has suggested that forthcoming employment regulations and taxes will cost UK firms as much as £25.6bn over the course of the next four years.

The business group warns that a series of new regulations, scheduled to come into effect between April 2010 and April 2014, could threaten the progress of job creation and economic recovery in the UK.

The BCC highlighted the cost of employer national insurance contributions as a particular issue.

Meanwhile, other costly regulations highlighted by the organisation include the Equality Bill, the Agency Workers Directive, and Pensions Reform.

The BCC is calling for a three-year moratorium on new employment laws in the UK, and is also urging the Government to lead a campaign for an EU-wide moratorium.

David Frost, BCC Director General, said, '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'.