Culture of risk-aversion identified by forum

The Forum of Private Business (FPB) has welcomed a report by the Better Regulation Commission (BRC) which has identified the emergence of a 'culture of risk-aversion' in the UK.

The Forum of Private Business (FPB) has welcomed a report by the Better Regulation Commission (BRC) which has identified the emergence of a 'culture of risk-aversion' in the UK.

The BRC report has criticised the Government's approach to risk, arguing that too much regulation is stifling our 'national resilience, self reliance and spirit of adventure'.

The FPB, which represents over 25,000 small and medium-sized firms is not surprised by the report's findings.

Its Chief Executive, Nick Goulding, said: "The burden of regulation is stifling entrepreneurial spirit.

Of course we welcome guidelines that promote the safety and well-being of employees, but we must encourage the growth of small businesses rather than hamper their development through unnecessary regulation." Trade Union Congress (TUC) General Secretary, Brendan Barber, declared that some employers are using exaggerated 'myths' about health and safety rules to ridicule them, and that sensible debate is in danger of being 'hijacked by the anti-red tape brigade'.

Mr Goulding feels that this is sidestepping the issue at hand: "Mr Barber is sadly mistaken if he thinks that this issue has been exaggerated or sensationalised.

The reality of the matter is that regulation is designed for larger companies.

Smaller firms simply do not have the time or resources to make sense of the amount of regulation which seem to flow from Westminster." At the FPB's Small Firms' Summit held last week in Westminster, Mr Goulding unveiled the results of a survey which cited health and safety regulations as the costliest form of red tape for small firms.

Keynote speaker at the summit, the Rt Hon David Cameron MP, spoke on regulation, saying that introducing new laws should be the 'last resort' for policymakers.

Tim Rhodes is the Managing Director of Skypark Freight and has felt the impact of the regulatory burden on his own business.

He said: "They don't let you get on with your job, it seems like they are constantly coming out with new regulations which half the time they don't even tell you about.

I really don't have time to chase them up." Mr Goulding feels that Mr Rhodes' experience is indicative of a problem faced by business owners throughout the country: "There is no logic to a system where the burden of regulation is so high that smaller firms simply do not have the resources needed to comply." "What we need is a realistic appraisal of the regulatory burden.

Our priorities should be to protect employees rights without restricting the growth and profitability of smaller firms.".

Back to top