GOVERNMENT proposals to allow the NHS to charge businesses for the cost of treating workers will seriously damage business, according to the region's Chamber of Commerce.

The proposal is that businesses would be billed if they were found liable in personal injury cases, in situations where workers have been injured in accidents at work.

It is estimated that the NHS would be able to reclaim around £120m a year.

The Chamber of Commerce Herefordshire and Worcestershire has already taken up the spiralling costs of employers' liability insurance with the Government.

All employers are legally obliged to have liability insurance but premiums have risen by several hundred per cent in some cases and some businesses have had to cease trading because they cannot get, or are unable to afford, the insurance.

If the proposal to allow the NHS to charge comes in, premiums will go up even more and this will seriously damage the competitive position of many businesses, according to the chamber.

"Health and safety at work is vitally important," said Christopher Harvey, head of membership and representation at the chamber.

"We work with businesses across the area to help them with health and safety practices, but this proposal from the Government will do nothing to improve on that work and will add new financial burdens to businesses and will seriously damage competitiveness and job creation."

The chamber will be contacting ministers to make its views known.