The Health and Safety Executive (HSE) has issued plans to extend its current cost recovery system so an inspector will charge a fee for an 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 around £750.
The Federation of Small Businesses (FSB) has argued that such a bill for a small or micro business 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 raises concerns that such firms may view the proposal as a revenue-generating exercise which could damage the HSE's relationship with business.
The FSB group says it is worrying that the proposal fails to clarify whether the money raised will go to the HSE or to the Treasury. If it goes to the HSE, firms could fear that their inspection has been influenced by the need to raise money - particularly in the context of the 35% budget cut to the HSE.
John Walker, National Chairman of the FSB 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."
