Mid Yorkshire Chamber, which has lobbied against April’s one per cent rise in National Insurance, is campaigning for a three-year moratorium on new employment laws.

A halt to the legislation, which includes an agency workers directive, additional paternity pay and leave, the Equality Bill and apprentices’ national minimum wage, would be deeply unpopular with unions.

But the chamber says the laws will hamper employers’ efforts to create jobs and wealth, a top priority for economic recovery, and see UK employers pay out an extra £25.6bn in the next four years.

Steven Leigh, Mid Yorkshire Chamber’s head of policy, said: “The non-stop flow of additional red tape, legislation and additional taxes is strangling businesses at a time when they need to be helped and encouraged.”

The chamber has already opposed any rise in employers’ NI contributions, saying it could damage firms struggling to emerge from the recession.

Mr Leigh added: “The speed of our recovery is now being seriously threatened, and despite the poor state of our public finances, we consider it essential that in the year ahead the government should prioritise business at the heart of the economic recovery.

“The increase in employer NI contributions doesn’t make any sense at a time like this and it should be scrapped.”