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Health and safety reforms could save business £300 million

Written by Catherine Murray

Wednesday, 06 August 2008

Small businesses could save up to £300m a year with better advice and support on health and safety.

A new report published by the Better Regulation Executive (BRE) looks at how health and safety regulation affects low risk and small businesses. The report reveals that the average company spends around 20 hours a year, or more than £350, on administration meeting health and safety requirements.

Cutting the time spent by just five hours per company would save low risk businesses £150 million a year.

Health and safety consultancies can provide important services and support to small businesses, however, the report found some firms are paying for support they could do more cheaply in house or by going beyond what is required by the law, with little or no benefit in the workplace.

Low risk businesses could save up to £140 million a year if 20 per cent turned to the HSE or other government sources for basic support on health and safety, the report reveals.

The problem is exacerbated by a poor perception of health and safety regulation by public and business communities.

John Hutton, Secretary of State for Business comments, "Inaccurate reports of the impact of health and safety on businesses and the public can be highly damaging. Putting the record straight on good, common sense regulation that saves lives will help cut the unnecessary costs that exaggerated fears can cause."

Hutton suggests, “Introducing simple steps, such as making information more easily available and getting better advice to firms that need it, will help save time and money for UK business.”

“Cutting the amount of paperwork for low risk businesses, and making complex regulations easier to understand, will also help create safer environments for workers and the public.,” he adds.

The BRE sets out some recommendations to save these firms time and money, while improving working environments and general understanding of health and safety.

Recommendations for reducing costs of meeting health and safety regulations include:

improved web-based and telephone support, offering advice as well as information, for low risk businesses;
better advice to help small businesses know when to buy-in the help of consultants for health and safety advice;
maximising the resources of HSE and local authority inspectors, making inspection and enforcement more efficient, focusing on higher risk workplaces meaning fewer inspections for low risk;
developing a new, single assurance scheme so small businesses can have just one process to deal with a range of requirements, including health and safety, fire, food safety regulations; and
improving the perception and understanding of health and safety issues.

The report, entitled "Improving outcomes from health and safety" can be found at http://www.berr.gov.uk/