§ Miss BeggTo ask the Secretary of State for Trade and Industry (1) what recent assessment she has made of the ability of small businesses to secure Employers' Liability Insurance; [87405]
822W(2) how many businesses have gone into liquidation citing the inability to obtain affordable Employers' Liability Insurance in the last 12 months. [87403]
§ Miss Melanie JohnsonAs businesses enter liquidation proceedings for a number of reasons, it is not possible to single out one issue, such as difficulty in obtaining Employers Liability Insurance as the sole cause of such proceedings.
However, my Department is very concerned by reports of significant rises in insurance costs, particularly for small businesses, and is aware of the difficulties that this has posed for some firms.
As announced in the Chancellor's pre-Budget report in November, the Government are conducting a review to assess the scale and nature of difficulties with the Employer's Liability Insurance system. The Department for Work and Pensions is leading the review and my Department will play a full and active role to represent the needs of business. Further details about the review are available at www.dwp.gov.uk/publications/2002/mdex.htm.