Cutting red tape is the only way that we will tackle unemployment,  say West Midlands business leaders as the latest economically inactive figures show a rise of 0.1 per cent to 243,000.

"In a world where money just isn't available to throw at the creation of jobs, gaining business confidence by making it easier to do business is paramount," said Birmingham Chamber of Commerce president Michael Ward.

A recent survey by British Chambers of Commerce says that employment legislation is hampering growth.  82 per cent of firms said they found regulations around sickness absence burdensome and 73 per cent said the removal of the Default Retirement Age in April will be detrimental to their business.

Mike Ashton, spokesman for West Midlands Chambers of Commerce, said: "Regulations are a huge burden on larger firms at a time when we should be encouraging businesses to expand. The government must act quickly to ensure that businesses can concentrate on generating the growth which will help create jobs."