I certainly do. Having been a business owner under the previous Government, and representing businesses as a regional chairman for the Institute of
Directors, I know that the thought of ever more regulation is in the psyche of business people. The Bill is totemic—in fact what the Government are doing is totemic—not only in stemming the tide of regulation but in giving a commitment to reduce the burden of regulation over the term of this Parliament. That will take a lot of believing by the business community, and we need to reinforce that message. It will give confidence not only to people who have businesses but people who would not even consider starting up a business. There is no doubt that when people who work in a business see the pressure that the regulatory burden places on those who run it, they are dissuaded from going it alone and starting their own business. We want to reverse that situation.
Recommending the removal of the self-employed from health and safety law originated under the review ably chaired by Professor Ragnar Löfstedt, on which I served as a member of the advisory panel with the hon. Member for Ellesmere Port and Neston (Andrew Miller), Sir John Armitt, Dr Adam Marshall of the British Chambers of Commerce, and Sarah Veale, who was later replaced by Liz Snape, representing the TUC. The proposed change is based on the approach taken in a number of other European Union member states, including Germany, where legislation on health and safety at work applies only to employed workers; France, where, as a general rule, the provisions do not apply to the self-employed or to employers themselves, except when they are directly carrying out an activity on a site; and Italy, where the health and safety at work regulations do not apply at all to the self-employed. Clause 1 is nothing new in a Europe-wide sense as regards health and safety.
When the clause was scrutinised by the Joint Committee, on which I also served, with my hon. Friend the Member for Witham, a number of stakeholders raised concerns that the recommendation might lead to the self-employed in risky occupations such as construction being taken outside health and safety law. I can assure the House that Professor Löfstedt has made it clear that that was never, and is not, the intention of the proposal. The clause has the support of the Federation of Small Businesses, which believes that it will help with the perception of health and safety law. I fundamentally disagree with the groups who are arguing that this change will cause confusion, because asking the self-employed, “Does your work activity pose potential risk of harm to others?”, is not too taxing a question. As I said, major economies in the European Union seem to manage perfectly well without this unnecessary regulation. It is also worth noting that it could well save small businesses not only an enormous amount of time but an estimated £300,000 a year.
Clause 2 curtails an employment tribunal’s powers to make wider recommendations. This is another needless regulation. Its discontinuation is supported by business groups, as best summed up by the British Chambers of Commerce, which stated that the measure currently in place extends tribunals’ jurisdiction beyond the
“time, information and expertise of the panel”.
I fully agree with that view. The regulation is unnecessary because it serves only to create fears among employers about inappropriate or excessive recommendations. I therefore welcome this move to abolish it.
Clauses 58 and 59 imposes on regulators the economic growth duty—a new duty that requires them to have regard to the desirability of promoting economic growth when exercising their regulatory function. This is a welcome move, as all sectors that are in a position to do so should do what they can to contribute to and complement economic growth. The clauses have received a positive reaction from business groups and many of the regulators themselves, with the British Chambers of Commerce stating that the duty could
“help establish more constructive relationships between business and regulators”.
The Institute of Directors said that it could be helpful in serving as a catalyst for regulators to consider the costs and the benefits when developing new policies. I believe that there needs to be a new and dynamic—a symbiotic—relationship between business and the regulator rather than the historical one that has too often tended to be adversarial, and these clauses will help to achieve that. It is also encouraging that the measure is being positively embraced by many regulators such as the Security Industry Authority, which stated that it recognises the importance of economic growth and supports efforts to encourage it. These regulators are funded to the tune of £4 billion a year, and they need to make their contribution to economic growth if we are to compete on an international level against countries with far fewer regulations and regulators than the UK.
I recognise that the measure has not been universally welcomed, with opposition from, among others, the TUC, which described the duty as “a very odd concept”—but then it often appears that the TUC and its paid mouthpiece the Labour party view free-market capitalism as a very odd concept, as underlined by some recent policy announcements. I find that view rather disappointing.