Government action to tackle the ‘compensation culture’

However, a Yorkshire lawyer said the report failed to acknowledge that Britain’s “balanced and proportionate” health and safety laws were saving lives.

In his Budget speech, Mr Osborne also said that “no-win, no fee” legal services that “prey on employers” will be restricted.

Lord Young’s report Common Sense, Common Safety, which was published last year, called for a series of far-reaching reforms to end “senseless” rules and regulations.

Key recommendations include simplifying claims procedures for personal injuries, reviewing the way businesses have to report accidents in the workplace and simplifying the risk assessment procedure for low-hazard workplaces such as offices, classrooms and shops.

Lord Young warned there was a “growing fear” among business owners of having to pay out for even the most unreasonable claims. He added: “Businesses now operate their health and safety policies in a climate of fear. The advent of no-win, no-fee claims and all pervasive advertising by claims management companies have significantly added to the belief that there is a nationwide compensation culture.”

Simon Allen, the joint head of national personal injury with law firm Russell Jones & Walker in Sheffield, said yesterday: “It is disappointing that Lord Young approached his review of health and safety legislation on the false assumption that we are in the grips of a compensation culture.

“Those of us dealing with this area of the law on a daily basis will know that the reality is very different.

“Six years ago the Better Regulation Task Force examined this area in detail. They found the idea of a compensation culture was actually a myth. The courts were not awarding large sums of compensation for spurious claims based on barmy health and safety legislation. People were not recovering damages without having to take responsibility for their own actions.

“The problem was that many thought these things were happening. Lord Young has done little to disabuse them of their misconceptions. Lord Young’s report does not actually propose any substantive changes to health and safety legislation. That may well be because he realised when he looked at it that the law was not a problem in need of repair.

“In fact, health and safety legislation in this country is generally balanced and proportionate...Rather than tearing up our laws and regulations we should instead be grateful for the lives saved and injuries prevented.”

Teresa Hancock, a partner in the safety, health and environment team at law firm DLA Piper, said Lord Young’s report included positive recommendations to develop simpler risk assessments for low hazard workplaces.