The deputy Prime Minister has this month stated that he wants small businesses to be subject to no more than two inspections a year by all regulators. Speaking to small-business leaders in Shoreditch, Nick Clegg said the Health and Safety Executive, the Environment Agency and other regulators must understand that their roles are to make the lives of small businesses easier.
He told the audience that the country needs small firms to grow and insisted that a culture change among regulators is crucial if this is to happen. He said, "So there will be a major shake-up of business inspection, going through the regulators, asking are they still necessary? Should they still exist? Making sure that, yes, they intervene when necessary, they offer advice and support but otherwise, they let you get on with it."
He went on to say that the Government would impose a cap on the number of inspections that regulators can carry out on any one small company. "Why for example, should regulators be able to turn up at your door whenever they want, and as often as they want? Why can't we limit the number of inspections to, say, two a year, ensuring these bodies co-ordinate among themselves to stick within that limit?"
Commenting on the speech, the TUC pointed out that a new survey of SMEs by the Department of Business, Innovation and Skills suggests that employment law and health and safety regulations do not even feature in their list of concerns. General Secretary Brendan Barber said, "Regulation is there to protect us all from businesses that rip us off, trash our environment, and risk our health - or even our lives. However, it is only of use if it is enforced. Enforcement should not be seen as a burden on business, but instead a way of ensuring that good businesses are not undercut by cowboys who disregard the law and cut corners, whether it is on paying VAT, or not polluting our rivers. Cuts in enforcement will put even more of us at risk of damaged health, injury or death in our workplaces."
The Hazards Campaign were more damning in their criticism of Clegg, accusing him of talking "utter cobblers." They continued, "Not only is it cobblers, it is dangerous, toxic, life-threatening cobblers. This is yet another assault launched by the Tories on laws and enforcement that protect workers, now with clear support from the Lib Dems."
