New government plans to reduce red tape
Commercial insurance
28th May 2010
Businesses in the UK could find they are facing smaller piles of paperwork in the future, as the new coalition government has pledged to reduce the burden of red tape on enterprises.
Under the joint agreement published by the Conservative-Liberal Democrat administration, the two parties declared their commitment to creating "a fairer and more balanced economy", with more even distribution of businesses and opportunities between sectors and regions, greater flexibility in legislation and an easier system for starting a new enterprise.
Measures in the section of the document relating to firms that may by of particular interest include a pledge to create a "one-in, one-out" regulatory system that aims to reduce the burden of red tape on companies. In addition, "sunset clauses" will ensure all rules and bodies charged with imposing them are reviewed regularly, inspections will be targeted at high-risk organistions, while the system of corporate tax will be simplified and made more competitive.
The public will be provided with the opportunity to challenge regulations, while employment and workplace laws will be explored by the new administration to ensure they balance fairness with the need for businesses to be competitive.
With such significant changes expected to take place for companies of all sizes as a result of a new government following the May 6th election, now is a good time for firms to reassess their insurance needs and to check that they have all the cover in place they need to provide peace of mind and to protect their assets, profits, employees, customers and directors.
The 2010 Barometer from the British Chambers of Commerce estimated regulations are proving costly for businesses in the UK, with the cost of the burden of red tape rising by £11 billion from 2009 to £88.3 billion this year. An additional 40 rules were imposed on firms in the past year, creating a recurring cost of over £1 billion, with the Community Infrastructure Levy and the Euro 5 and 6 Light Duty Vehicle Emissions Standards proving particularly expensive.
Giles Insurance Brokers Ltd advises that as the economy starts to recover from the impact of the recession, many enterprises will start to hire personnel again and this could subject them to further regulation. Under such circumstances it is vital to have the correct insurance policies in place to suit the changing needs of the business, including, but not limited to, employer's liability, buildings and contents, public liability, professional indemnity, goods in transit and directors & officers cover.
This recommendation is backed by figures from the Confederation of British Industry and Harvey Nash, which found that many employers have started hiring again and are beginning to phase out measures introduced to reduce redundancies during the recession, as they prepare to expand their operations.
As such, Giles asserts it is not only companies that should assess their insurance needs, but also recruitment agents. Dedicated cover is available for such professionals and their businesses to ensure they are not placed at risk by changing legislation and markets, with specialist brokers supplying expert advice about the best policies on offer.
