LEGISLATION coming into force over the next three years will add £819m in costs to North-East businesses, threatening their recovery from recession, research has revealed.

The figures, released by the North East Chamber of Commerce (NECC), illustrate how businesses are being burdened by red tape.

Among the burdens facing employers are:

● National Insurance Contributions increases, which will have an annual impact of £150m;

● Pensions Reform, which will add £154m annually;

● The new Agency Workers Directive, which will cost companies £48m each year.

A further 11 pieces of legislation are also due between now and 2013.

Ross Smith, NECC head of policy, said: “Over the next three years, there will be a wave of red tape and taxes that threatens to engulf businesses at a time when they need to focus all their resources on growing the fragile economic recovery.”

The NECC 2010 Manifesto, Delivering the Recovery, called for an economic recovery test to be applied to all new legislation to ensure that changes do not hinder businesses.