BUSINESS owners believe it is harder to start and grow a company than it was when Labour first came to power a decade ago, according to a report today.

The British Chambers of Commerce said that despite claims by the government that it had created a dynamic, entrepreneurial and competitive economy, businesses believed that the "opposite" had happened.

A survey for the BCC ahead of its annual conference in London today shows that most firms believed it is harder to start and grow a business than in 1997.

Education, skills and red tape are the three main reasons given by the 145 organisations surveyed. The study shows that business owners want the government to do more to improve the education system and skills training.

A DTI spokesman countered by saying: "There are 600,000 more small businesses now than in 1997 and the OECD has named the UK as the best place in Europe to do business." Tweet