PORTSMOUTH and South-East Hampshire Chamber of Commerce and Industry is backing the results of a national survey conducted by the British Chambers of Commerce that shows one in five businesses is planning to lay-off staff in order to cope with the rise in National Insurance contri-butions.

Members say the problem is even greater for small and medium sized enterprises, one third of which expect to have to cut jobs.

The survey sponsored by Oracle and Cisco Systems, looked at business attitudes to productivity, the barriers to increasing productivity and what they want from government in order to be able to raise productivity.

Maureen Newton, the chamber's membership services manager, said: "This rise in contributions couldn't have come at a worse time with the economic climate showing signs of weakening.

"The fact that one in five employers are considering cutting staff to deal with this increase is of great concern. Already burdened by rising regulation, more business tax and an acute skills shortage, this could be the final nail in the coffin for some businesses."

The survey also found that 46 per cent of those questioned believed that other countries are more productive because they have less of a regulatory burden; 37 seven per cent believed other countries had a more advantageous tax structure and 11 per cent were considering moving abroad.