Report to save money and boost business confidence

Small businesses will get a one stop shop for guidance on health and safety and employment legislation, that will help make sure they comply with the law and save them time and money, under new recommendations announced by the Government.

An independent review, undertaken by business woman Sarah Anderson, has recommended a range of innovative solutions to improve the quality of guidance government gives to business. The recommendations are designed to increase compliance with the law, boost business confidence in government advice and cut costs for small businesses. They include:

- a telephone advice service, free to SMEs for the first year, providing tailored and "insured advice" to make sure they comply with employment and health and safety law;

- Government taking responsibility for its guidance, removing disclaimers and encouraging discretion over the prosecution of "reasonable" businesses; and

- creating a single access point for all government guidance.

Sarah Anderson said: “Many small businesses do not use and have little confidence in guidance from government. Where there is good guidance, they don’t know where to go. Instead they choose to pay for advice, which they could get free or which might make them do more work than is necessary, to comply with the law.

“Improving the quality of, and access to, government advice is vital if we want to see better understanding of, and compliance with, the law.“

The review focused on improving three areas: providing certainty over outcome; making guidance more accessible; and improving the clarity of guidance for businesses. Other proposals included a ‘quick start’ summary for each piece of guidance, setting out essential actions firms must follow to comply with the law. It recommended providing a range of channels through which businesses could access guidance, whether electronically, through printed material or face to face contact.

Commenting on the review, director general of the British Chambers of Commerce (BCC), David Frost, said: “It is crucial for the UK's economic competitiveness that the regulatory burden on business is reduced. For too long the government has abdicated responsibility on helping firms comply with new legislation.

If the recommendations of this review are implemented, it will be a significant step towards reducing the burdens on businessess, especially at a time when firms are focusing on combating the downturn."