Low-risk firms waste money on consultants, says BERR

News | HSP
07.08.2008

Low-risk businesses could save £140 million a year if 20% sought basic health and safety advice from the HSE and other government sources rather than buying in consultancy, according to a new Department for Business, Enterprise and Regulatory Reform (BERR) report.

The report, produced by the BERR's Better Regulation Executive (BRE), says that small businesses could save £300 million each year overall with better advice and support.

The report follows a review of how the regulatory regime affects workplaces where there is a low risk of accidents and ill health, particularly smaller firms. Its aim is to reduce the administrative burden on these companies while improving confidence in the health and safety system generally.

Recommendations in the report include improved web and telephone support, offering not just information but also advice; better guidance on when it's necessary for small firms to buy in advice; a new, single assurance scheme so small businesses have just one process to deal with a range of requirements, including health and safety, fire and food safety regulations; and more efficient inspection and enforcement - that is, more visits for higher-risk workplaces and fewer for low-risk ones.

There are 1500 specialist safety consultancies in the UK, with annual sales of £1 billion. The BRE concludes that while these provide important services, some firms are either paying for support they could organise more cheaply in-house or going beyond the legal requirements with minimal benefit.

The average company spends 20 hours a year on administration to comply with health and safety regulations, costing more than £350.

Secretary of state for business John Hutton said, "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 ... 

"Putting the record straight on good, common-sense regulation that saves lives will help cut the unnecessary costs that exaggerated fears can cause."

The Local Better Regulation Office, which works with local government to reduce regulatory burdens on business, welcomed the report, in particular the proposal for a single assurance scheme, and said it would open discussions with LACORS (the representative body for local authority regulators) and the HSE about taking forward the recommendation.

But the TUC said it was disappointed by the BRE review, pointing out that, on average, SMEs are only visited by a safety inspector once every 20 years.

General secretary Brendan Barber said, "This report does nothing to address the appalling health and safety record of Britain's small businesses ...

"Small businesses have a worse record on most health issues than larger ones. Rather than address this problem, many have simply ignored it. More than half of small businesses have not even done a basic risk assessment, despite this being a legal requirement."

Improving Outcomes for Health and Safety can be downloaded here.

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