The British Chambers of Commerce (BCC) has warned that the regulatory burden in continuing to increase.

According to data released by the BCC, last year the reoccurring financial cost of complying with regulations increased to £10.3 billion, an increase of £1.6 billion since 2005.

"Despite talking tough on regulation, this year's figures are once again painful reading for business," said Sally Low, director of policy and external affairs at the BCC.

"The UK's growing burden of red tape is unsustainable and economic success cannot be taken for granted," she added.

Indeed, the BCC notes that Britain's businesses have been obliged to comply with requirements of the Data Protection Bill at a cost of £6.6 billion.

In 2005 the cost to businesses complying with regulation was £8.7 billion.

The BCC is a UK-based not-for-profit organisation representing Britain's business sector.