Red tape is costing British companies billions, according to the British Chambers of Commerce.

Outsourcing back office services could be one of the ways through which recruiters can steer clear of red tape, which is costing British companies billions of pounds.

Those thinking of starting a recruitment company may be interested to hear that the cost of red tape to British business has risen to £88.3 billion, an increase of over £11 billion since last year, according to figures from the British Chambers of Commerce (BCC).

With this in mind, the organisation has called upon the coalition government to put an end to the "relentless flow" of regulations. The 'Burdens Barometer' shows that 40 additional regulations have been added since 2009.

"There needs to be an urgent and sweeping review of all regulations that incur costs for business, and importantly, a moratorium on new employment laws until at least 2014," commented David Frost, director general of the BCC.

He went on to state that Tuesday's Queen's speech offers a perfect platform for the new government "to prove its commitment to job creation and a better business environment".

Payrolls services and invoice management are some of the things that can be outsourced to an agency.