Insider Media Limited

The Derbyshire and Nottinghamshire Chamber of Commerce is urging the government to exempt new businesses from forthcoming pension reforms. The call comes as the chamber published the results of its latest survey of business owners.

Survey results identified new pension requirements, dismissal rules and sickness absence as the top three barriers to creating jobs in the region.

More than one in three sole traders (37 per cent) identified forthcoming pension requirements as their number one recruitment obstacle.

The chamber said the pension reform and other employee regulations are barriers to sole traders wanting to take on their first employees.

When asked what ambitions local sole traders have to increase their workforce by 2015, 36 per cent said they planned to take on their first employee(s), 52 per cent said they had no plans to employ someone and 12 per cent were not sure.

George Cowcher, chief executive of the Derbyshire and Nottinghamshire Chamber of Commerce, said: "Sole traders – and start-up enterprises in particular – play a key role in driving the economy forward. Whilst some do not want or have the potential to expand, many of them will go on to become the job creators of the future.

"Businesses consistently state that over-burdensome employment regulation prevents them from taking on more staff. In an environment of high unemployment, and weak economic growth, Government has to look at how it can free up these business owners and allow them to grow their enterprises."