In addition to the moratorium, the government also proposed a public audit of existing rules and regulations, and the repeal of the regulations extending the right to request flexible working to parents of 17 year olds for all businesses, which were due to be introduced on 6 April this year.

Ministers say the changes will allow entrepreneurs to concentrate on growing their businesses.

Prisk made the announcement at the Federation of Small Businesses’ (FSB’s) annual conference last week where national chairman, John Walker, called the moratorium a ‘real victory’ for small companies in the UK.

‘For the next three years it will give those micro firms the confidence and stability they need to employ more staff without the worry of constant changes in employment law,’ explains Walker.

Chairman of the Better Regulation Executive, Sir Don Curry, says he had been pressing government to recognise the burden regulation places on small and micro businesses for some time.

He adds, ‘I would urge government to continue to look at measures such as this to continue to help economic growth.’