UK businesses wasted £7,000 each on fines in 2023

As the year draws to a close, businesses are analysing their performance, ingoings and outgoings in preparation for the new year.

Now, compliance e-learning company Skillcast has done its own analysis. Reviewing business fines given across the UK throughout 2023 to find the types of fines, where they’re given and the average fine values.

The analysis looked at over 265 fines given to businesses in 2023 from bodies including HSE, HMRC, ICO and FCA.

Perhaps unsurprisingly, London came out on top – accounting for close to a third (31.1%) of the overall fines given in 2023. This was followed by the South East (13.5%) and the North West (12.4%).

Region
% of fines
London
31.1%
South East
13.5%
North West
12.4%
East of England
8.6%
Yorkshire and the Humber
6.0%
West Midlands
5.6%
South West
5.2%
East Midlands
4.9%
Northern Ireland
3.7%
Scotland
3.4%
Wales
3.0%
North East
2.6%
The average value of a fine was £7,000, with the highest being £17,219,300 from the FCA and the lowest just £1,500.

The property and housing industry was found to be most susceptible to AML breach fines, accounting for under two-thirds (62%) of AML fines included in this analysis. Almost all (99%) of fines were given for failing to apply for registration at the required time.

The most penalised industry by HMRC (tax default and AML breaches) was the property and housing industry. By contrast, the most penalised industry by HSE was local councils.

Vivek Dodd, CEO of Skillcast, said, “Proactive compliance is the shield against fines like the ones these businesses have faced—stay informed, implement robust programs, and foster an ethical culture to safeguard your business.

“Training compliance throughout your business is key to preventing those nasty fines that can be detrimental to small businesses. We conducted a recent study that found that over a quarter of small businesses fined by the ICO or FCA end in liquidation. You can control this by making sure your business is up to date with laws and regulations, that your staff are fully trained, and that you keep track of every area of your business.”