The government have announced that they are to delay the introduction of new rights for workers in a bid to give a boost to struggling businesses.

The new laws would have increased the rights of agency workers and given employees the right to take time off for training or to perform ‘civic duties.'

"With these announcements, the government is sending out a positive message to business. Additional employment legislation would be a real barrier to job creation at a time when unemployment could approach 3 million," said David Frost, Director General of the British Chambers of Commerce.

Small businesses regularly report that new employment legislation is the area of red tape that is most harmful to their growth.