Keeping Britain's opt-out from the European working time directive is "one of the best ways" of retaining competitiveness, according to a report published today.

A Lords committee ruled that the structure of British business made it "particularly suitable" for a voluntary opt-out system.

"Other EU member states regularly extend the 48-hour week by collective agreement," said committee chairman Lord Williamson.

"But in the UK only 36 per cent of the total workforce, and only 22 per cent of those in the private sector, are covered by collective agreements."

"The government should look at ways of preventing workers being coerced into working long hours if they don't want to," he added.