Warning over drive to cut red tape

Deputy Prime Minister Nick Clegg announced a “major shake-up” of business inspection so that firms would be offered advice and support, but would also be allowed to “get on” with their work.

Mr Clegg told a business audience in London there needed to be a “culture change” in bodies such as the Health and Safety Executive, Environment Agency and HM Revenue and Customs.

He said: “They will need to respect the regulator’s compliance code, which says regulators must think about and encourage economic growth, and they will have to make sure they aren’t breathing down your necks.

“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 coordinate amongst themselves to stick within that limit?

“Which body does what can be extremely unclear, so we’re minimising the number of authorities you will have to deal with in the future. Introducing sunset clauses for new regulators. Placing them under rolling review.

“If they become irrelevant, or their functions are replicated elsewhere, they’ll go.”

Mr Clegg said some regulation such as the minimum wage, patenting laws and carbon budgets was “hugely important”, but he added that the coalition’s “attack” on red tape had already saved businesses £3bn, with a further £600m worth of savings expected from exempting more firms from being audited.

TUC general secretary Brendan Barber said: “This is another example of the Government putting the right to make a fast buck before our health and safety and our lives – although at least the Deputy Prime Minister acknowledges the dangers of the ‘scrap it all’ line peddled by the Tory diehards.

“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 or injury or death in our workplaces.”

The director of policy at the Engineering Employers Federation, Steve Radley, said: “Business will welcome any efforts to cut the burden of regulation. However, there is a potential contradiction in that Government is looking to cover the costs of these inspection bodies by charging fees for their intervention and, in effect, making industry pay to be regulated.

“In seeking to balance budgets, the emphasis has to be on taking a more proportionate risk-based approach and not relying on charging fees.

“It is vital that interventions by regulatory bodies are only targeted where there is significant risk and government policy should reflect this.”

Richard Jones of the Institution of Occupational Safety and Health, said: “The Government must ensure standards of public and worker protection will be maintained, before considering further cuts to health and safety inspections.

“It’s important to remember that sometimes health and safety inspectors may need to make unannounced visits following serious complaints, concerns or incidents in order to ensure people’s safety is not being put at risk. This must not, under any circumstances, be impeded.”