The annual cost of running Britain's business regulators has risen by 80 per cent since Labour came to power, according to a new survey.

A report from the London Business School said that, excluding the £221 million spent by the new Financial Services Authority, the cost of regulators such as the Office of Fair Trading has risen from £141.5 million in 1996/97 to £261.5 million in 2002/03.

And the report also expressed fears that regulators were also taking on increasingly political roles which could damage the economy.