Bond Pearce

Businesses are warned not to hold their breath.

Lord Young thinks regulation may have been applied too generally and become an unnecessary burden on firms. "We need a system that is proportionate and not bureaucratic," he says.

But effective change will not come from a pruning exercise. Regulatory law has become ambiguous and contradictory - to such an extent that effective compliance comes at the price only of constant vigilance.

Take fire safety rules for example. We are holding a workshop in July to discuss the implications of a court ruling that arose from a comparatively minor breaches unconnected to a fire in the premises of a High Street retailer.

 

Two breaches of the Regulatory Reform (Fire Safety) Order 2005 (RRFSO) were committed - a failure to carry out a suitable and sufficient risk assessment and in adequate training. Fines and costs totalled £686,000. More detail on the Court of Appeal judgment is available for you to listen to in this podcast.

That heavy penalty to the retailer was higher than a comparable case in the field of health and safety - the judge applied a higher standard of seriousness to breaches of fire safety responsibilities than duties under the Health and Safety at Work Act. One minor fire had become a potential hazard for thousands of businesses which are customer facing.

So the perils of regulation are not confined to their draftsmanship. The courts in general - and judges' rulings in particular - can have major repercussions. Lord Young may be frustrated and stymied as he tries to bend the legislative and judicial systems to his notion of "common sense".

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