THE burden of red tape on British business has hit a record of nearly £56 billion and shows no sign of slowing, according to figures to be published this week.

The British Chambers of Commerce (BCC), which compiles its “burdens barometer” on a regular basis, says the cumulative cost of regulation on British business is now £55.6 billion.

A year ago that burden was £44.8 billion, revised figures reveal, implying an increase in red tape of more than £10 billion in the past 12 months.

The BCC said the increase was particularly disappointing in light of the government’s pledge to make 2006 the “year of delivery” on cutting red tape.

“Despite talking tough on regulation, this year’s figures are painful reading for business,” said Sally Low, the BCC’s director of policy. “The UK’s growing burden of red tape is unsustainable and economic success cannot be taken for granted. We risk significant damage to the compet-itiveness of UK companies. This year needs to be a year of action, not words.”

The figures are compiled by experts from the London and Manchester business schools, based on regulatory impact assessments conducted by government departments. They are the closest thing to an official estimate of the cost of red tape.

They show that the biggest burden on business comes from the working-time regulations — the 48-hour week — and data protection. Environmental regulations are increasingly burdensome to business. But the problem is often the sheer scale of red tape faced by business, particularly smaller firms.

The latest estimate of the burden, which does not include the minimum wage, lists 77 separate groups of regulations that have a significant impact.

“These figures show government rhetoric about listening to business concerns and reducing regulation is just that,” said Fran-cis Chittenden of the Manchester Business School, one of the report’s authors. “The burden of regulation continues to grow unchecked and we predict this will continue.”

Ministers are sensitive to any red-tape criticism. Cabinet Office officials pointed to a commitment to reduce administrative burdens by 25% by 2010 and undertake 500 simplifications of regulations. They said regulations had benefits - protecting consumers, workers and the environment - as well as costs.

Pat McFadden, the regulation minister, said: “The government takes this agenda very seriously; that is why we measured the admin burden on business and produced a plan to reduce it by some £2 billion, through 500 different measures cutting right across government.

He added: “One of the reasons our economy is strong is because Britain is a good place to do business and we’ll keep working to make sure this will continue.”

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