CHAMBERS WELCOME ANNOUNCEMENT TO POSTPONE NHS CHARGES ON BUSINESS

3.28.53pm BST (GMT +0100) Tue 10th Jun 2003

Reacting to an answer in Parliament from Minister for Small Business Nigel Griffiths MP that indicated that the Government would not pursue businesses for NHS costs until after inquiries into the business insurance market have been completed David Frost, Director General of the British Chambers of Commerce (BCC) said:

"We are very pleased to hear that the Government is backing off this damaging step until they have completed their inquiries into the business insurance market. Given the huge rises in insurance that businesses have faced recently an extra burden on them is the last thing that they need."

"However, the Government should realise that this extra burden on business would be damaging regardless of the current state of the insurance market. The Chamber of Commerce network hears of businesses folding every week because of rising insurance premiums. Adding to the problem is not the answer to solving it.

"We congratulate Brian Cotter MP on his tireless work alongside the Chambers of Commerce network to defend the interests of small businesses from this measure and call upon the Government to reconsider the proposal completely to avoid the potentially devastating effects of this measure on small and medium sized businesses."

ENDS

NOTES TO EDITORS

1) The question and answer in the Commons were as follows:

Brian Cotter (Weston-super-Mare) : To ask the Secretary of State for Trade and Industry, What discussions she has had with the Department of Health and Social Care (Community Health and Standards) Bill on insurance costs for small businesses.

Nigel Griffiths: I know that businesses and business organisations are concerned about the possible impact on insurance costs of the Health and Social Care Bill's provisions on NHS cost recovery. I have represented these concerns to the Department of Health, and as a result the Government has decided that the provisions in the Bill will not be commenced before the outcome of further work on the Employers' Liability Insurance system is known.

2) Mr Cotter's office can be contacted on 020 7219 4357