Health and safety fines jump in UK following new sentencing guidelines

Fines for health and safety offences in the UK have more than doubled during the past year, after new sentencing guidelines were introduced under the Safety at Work Act. Data obtained by Clyde & Co from the UK’s Health and Safety Executive (HSE) and more than 300 local authorities, reveals that total fines on businesses increased to £73.2m in the first year of new sentencing guidelines ending 31 January 2017. This is up from £35.4m in the previous 12 months. The amount of fines collected by the HSE increased by 74% to £61.6m, from £35.5m. The total sum collected by local authorities in the same period grew by 1,870% to £15.2m, up from £800,000 the year before. New sentencing guidance under the Safety at Work Act introduced on 1 February 2016 toughened penalties for health and safety and corporate manslaughter offences. Under the new approach, the scale of fines varies according to the turnover of the company but can exceed £20m for the very worst cases involving corporate manslaughter, and potentially more for the largest companies. Rhian Greaves, head of compliance and strategic support in Clyde & Co's safety, health and environment team, said: "Health and safety is now a top priority for the boardroom. Our research confirms what we have been seeing in practice – the new sentencing guidelines are biting hard." He added: "Good health and safety management is morally right. It also makes good business sense. When the potential reputational damage and adverse PR is added to the cost of the fine, it's clear that health and safety failures are now a major business risk." Clyde & Co explained that under the new Safety at Work Act sentencing guidelines, the HSE has enforcement oversight of 'higher risk sectors' including construction and manufacturing. Local authorities are responsible for the enforcement of 'lower risk sectors', such as retail, leisure, hospitality, care, catering, warehousing and office space. Clyde & Co said figures show that the manufacturing and construction sectors paid the most in fines during the first year of the new sentencing guidelines. Fines paid by the construction sector rose 83% to £13m, compared with £7m during the previous year. Fines against the construction sector represented 21% of the overall total imposed by the HSE this year. Balfour Beatty suffered the highest fine imposed on the sector, at £2.6m. The manufacturing sector paid an even higher sum for health and safety failings. The value of fines collected from the manufacturing sector hit £22.8m in 2016/2017, up from £11.4m in the previous year. This equates to a 99% rise. Cristal Pigment UK Ltd received the highest fine in the manufacturing sector of £3m, for two separate incidents in which toxic gas clouds were released. Total fines paid by the manufacturing sector represented 37% of the overall total collected by the HSE this year. Mr Greaves said: "The floodgates are beginning to open and the new guideline is clearly having an impact. We have seen more fines exceeding £1m this year than in the previous 15 years combined. Companies should be concerned that fines are now routinely hitting the £1m mark, even in apparently less serious cases, meaning that all breaches of health and safety law are now a serious threat to a company's bottom line."

Health and safety fines jump in UK following new sentencing guidelines

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