A STAGGERING 80 per cent of Prestwich and Whitefield businesses and those elsewhere in Greater Manchester have seen notable increases in their Employers Liability Compulsory Insurance (ELCI) over the last 12 months.

That's according to results from the latest survey from Chamber Business Connections.

Of those businesses responding to the questionnaire that have reported increases in ELCI costs, almost half experienced rises of between 20 per cent and 50 per cent with 15 per cent seeing their premiums more than double during the past year.

The effects of these increases were stark yet predictable, with 86 per cent of businesses stating that ELCI costs had reduced their profitability. The Chamber says that 29 per cent of respondents stated that ELCI costs had led to them to cut investment levels.

David Peacock, chief executive of Chamber Business Connections, said: "These results act as a warning to the Government that rapid growth in insurance premiums may be hindering certain sectors within the UK economy.

"The decrease in profitability is an expected consequence of higher Employers Liability Compulsory Insurance costs. Yet, the inclination to cut investment is perhaps more damaging as it can affect the long-term viability of businesses within these sectors, particularly when competing with firms from abroad who may not be subject to the same level of scrutiny when it comes to their procedures."

Mr Peacock went on: "We have forwarded our findings from North Manchester firms on to the British Chambers of Commerce in London who will be putting pressure on the Government to review the ELCI market.

Chamber Business Connections, the trading name of North Manchester Chamber of Commerce, represents the interests of more than 2,500 businesses across Bury, Bolton, Oldham and Rochdale.