COMPANY directors in Yorkshire today reacted to a new inventory of red tape in Britain.

Ever-mounting employment rules and regulations are the biggest hurdle for UK businesses, according to a survey out today. Employment legislation was voted the principal red tape burden in the poll of members of the Institute of Directors (IoD).

More than 82 per cent of business leaders surveyed said that issues such as flexible working, maternity arrangements and employment tribunals were a "major" or "significant" distraction from the central task of running the company.

Denis Kaye, IoD Yorkshire's deputy chairman, said: "The first step in tackling red tape is to identify where the biggest challenges lie. This survey does that. It gets down to the detail for the first time, identifying those areas where rules and regulations affect business.

"It gives us a clear answer - the increasingly complex system of rules and regulations that employers face for every job they create."

Other key concerns included the Working Time Directive and payroll processing of social security benefits.

Mr Kaye, said: "If Yorkshire is to remain competitive in world markets we must get to grips with these problems.

"We look forward to working with Ministers and civil servants to see how we can turn these survey results into practical reforms that will sharpen our competitive edge."

Updated: 10:03 Friday, February 20, 2004