FSB: Proposals to charge for inspections will hit small firms hardest

Friday, 14 October 2011 4:30 PM

Proposals to charge small firms for ‘material’ faults found during inspections by the Health and Safety Executive (HSE) could damage relationships and may be seen as a way to raise revenue rather than improving compliance, says the Federation of Small Businesses (FSB) in response to a consultation which closes today.

The HSE has proposed to extend its current systems of cost recovery to include a fee for intervention where an inspector will charge for the inspection and any subsequent actions when a material fault has been found. The HSE estimates that for an inspection that results in a letter, the cost to business could be at least £750.

For a small or micro business, a bill of £750 or more for a material fault could be extremely damaging especially during difficult economic times. The proposal currently states that micro firms will in general receive the same level of fees as large businesses. This will disproportionally affect micro firms as fees of this level will have a greater affect on the ability of the business to function and grow.

The FSB is concerned that small firms may view the proposal as a revenue generating exercise which could damage the HSE’s relationship with business. Worryingly, the proposal fails to clarify whether the money raised would go to the HSE or to the Treasury. The FSB believes that if it goes to the HSE small firms could fear that their inspection has been influenced by the need to raise money – especially as the context for this consultation is a 35 per cent budget cut to the HSE.

It is important that businesses have a good working relationship with the HSE to allow them to ask for help and support to ensure they achieve compliance. With the possibility of a hefty fee over their heads they may be less likely to want to ask for help and compliance may suffer.

Furthermore, those businesses that wish to challenge the result of their inspection may have to cover the whole costs of the dispute if their complaint is not upheld. The FSB is concerned that many businesses will feel pressured to pay the fees and not appeal even if they have just cause due to the potentially large and undefined costs of a dispute process.

John Walker, National Chairman, Federation of Small Businesses, said:

“The FSB has a real concern about these proposals as they stand. Not only could they add to the fear that many small businesses have about health and safety regulation, but could have a serious impact on their relationship with the inspector, which if positive can help compliance to the benefit of the business and society.

“£750 is a hefty fee for small and micro businesses especially during difficult economic times. Most small businesses do not have the same resources that larger firms have to buy-in expert help and yet they are required to be experts in a wide range of complicated regulations. Instead of penalising them with large bills, the HSE should be there to help and support small firms to be compliant. For many small firms this proposal will be seen as anti-growth.”

ENDS
Notes to Editors


The FSB is the UK's leading business organisation with more than 200,000 members. It exists to protect and promote the interests of the self-employed, and all those who run their own business. More information is available at www.fsb.org.uk

For a copy of the full consultation response please contact Sara Lee at the Federation of Small Businesses.


Contacts

Andrew Cave, Chief Spokesperson: 07917 628991
Prue Watson: 020 7592 8121 / 07825 125 695 prue.watson@fsb.org.uk
Sara Lee: 020 7592 8113/ 07595 067068 sara.lee@fsb.org.uk

For regional FSB contacts please go to www.fsb.org.uk/regions

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• health and safety