British businesses should stop "whinging" about regulations that drive up standards, the TUC has said.

And bosses should stop trying to compete with international rivals by driving down costs at the expense of employees according to the union body.

In its response to a report on UK competitiveness commissioned by the Department for Trade and Industry, the TUC argues that government should use regulation to ensure Britain can compete in the knowledge economy.

The study pointed to Scandinavian countries as examples for British business chiefs to follow.

"Business is building on sand and the tide is coming in," said TUC general secretary Brendan Barber.

"The UK cannot compete for much longer with a strategy of building cheap things cheaper. The government are going to have to get on with the job while business remains pre-occupied with whinging about the imaginary 'red-tape'.

"The UK needs a high quality business environment and the government can start building it now with a number of productivity-driven interventions.

"A knowledge economy will thrive with a well paid and highly skilled workforce, achieved through a higher minimum wage and a properly coordinated and used skills training system.

"But only effective informing and consulting generates the employee trust and empowerment vital to a high performance workplace."