Red tape imposed on businesses must be cut to help firms survive the recession, according to the British Chambers of Commerce (BCC).

New rules - such as extra employment laws - have cost UK companies £77bn to implement over the last decade, according to the BCC.

"The UK's 4.5m private businesses, not the public sector, will lead this country's economic recovery. To make this happen, future governments - from whatever party - must focus on rebuilding our infrastructure, simplifying and reducing the red tape burden, and promoting overseas trade," said David Frost, director general of the BCC.

The BCC believe that the next government face three fundamental economic challenges: reining in public spending, tackling the record levels of debt in the country and identifying future sources of economic growth and jobs.