Business Continuity Discussed in House of Commons

Liberal Democrat MP Lorely Burt asked Tessa Jowell, Minister for the Cabinet Office, about what her Department intends to do to increase the proportion of smaller firms with business continuity plans.

This exchange was published in Hansard on 01 July 2009:

Business Disruption Plans

Lorely Burt (Solihull) (LD): What steps her Department is taking as part of its civil contingencies responsibilities to increase the proportion of small businesses which have a business disruption plan. [283135]

The Minister for the Cabinet Office and for the Olympics, and Paymaster General (Tessa Jowell): The Civil Contingencies Act 2004 places a duty on local authorities to provide business continuity advice, which ensures that advice reflects local conditions at times of emergency and meets local needs. To support that work, the Government have set up a business continuity advice line and in 2008 we published a national risk register to encourage organisations to prepare for the impact of business disruption. In addition, we are supporting the quality of that advice by the adoption of a British standard for business continuity.

Lorely Burt: In March, a Cabinet Office survey found that the proportion of small businesses that had a business continuity plan fell from 25 per cent. to only 14 per cent. The possibility of allowing a premium discount with insurers was being considered to see whether that would reverse the trend in respect of companies that had a business disruption plan. Will the Minister say whether she agrees with that strategy and how far the Cabinet Office has got with that investigation?

Tessa Jowell: It is clearly the responsibility of local authorities to pursue that policy with their small businesses and through their local organisations. However, the figures to which the hon. Lady refers rightly give cause for concern, and I am happy to write to her further about that matter.

Julian Thrussell BSI’s BS 25999 Standards Manager commented: “The low number of smaller firms with Business Continuity plans is disappointing. Often when I talk to smaller firms they are under the impression that Business Continuity has to be a big, complicated or expensive project. Nothing could be further from the truth. The best Business Continuity plans I see are remarkably simple and concise.

• What does the business do?
• How is it done?
• What can be done to minimise potential problems?
• How would you respond if something did happen?

“If a small firm can ask itself these key questions and produce answers that work for them, that may be all that’s needed. The British standard BS 25999 sets out how this can be done most efficiently. Business continuity is well within the abilities of all small firms.”

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