Relaxing Sunday trading laws would not create new jobs, a cost-benefit analysis into easing or removing current restrictions on Sunday trading in England and Wales has conceded.

The analysis for the DTI concluded that overall retail sales would not increase and, because employment was proportional to sales, new jobs would not be created. The findings were welcomed by shopworkers union Usdaw. Spokesman Paul Clarke, said: "This is what we have been arguing. Extending hours would not create jobs. More than half of retail staff are already under pressure to work on Sundays."

This week Tesco pulled out of the Deregulate campaign after research found most customers would only want a two-hour increase in Sunday trading.