Reasons are plentiful
And, they are all due to the government. Either ours or the one in Brussels.
Uncertainty over emissions legislation and the potentially huge tax liabilities generated by that, increasing taxes generally, increasing fuel costs (again due to uncertainties over cap and tax) and the prospect of massive inflation that will be brought on by the "quantitative easing" bollocks. Printing extra money ALWAYS produces inflation and devaluation and this is guaranteed to discourage companies from making new hires. Imagine the apparent increase in wage burdens that will be produced by 6 or 7% inflation, when incomes may not be rising anywhere nearly as much.
On top of which, this government (wherever it is) has a habit of implementing new criminal laws and making then retroactive. What company would want to do *anything* when it could suddenly become a criminal act dated back five years. X years worth of fines for something that was perfectly legal until the government decided otherwise.