The government plans to cut the number of hours staff can work before they must be offered guaranteed time as part of its manifesto pledge to ban “exploitative” zero hours contracts.

But the reforms mean Norfolk firms could face new red tape, extra staffing costs and lost revenue, increasing administrative costs and reducing their flexibility.

The changes could cost businesses up to £2.9 billion a year, according to the government's own analysis.

Prime minister Andy Burnham (Image: James Manning)

Sectors such as hospitality and retail are set to be worst affected as they rely heavily on casual, part-time and short-notice labour, partly due to their seasonality.

Restaurants, pubs, hotels, shops and tourist attractions require more staff at weekends and over the busy summer and Christmas periods than during the off-season.

Hospitality and retail are set to be the worst affected (Image: Archant)

Both sectors are still reeling from the government’s £25 billion national insurance tax raid in April last year, as well as consecutive increases to the national minimum wage in the last two years.

Hospitality businesses have........

© Eastern Daily Press