Small businesses are concerned that the government's review of liability has stalled.

The Federation of Small Businesses (FSB) is pressing the Department for Work and Pensions (DWP) to ease pressure on companies by tackling the cost of employers' liability (EL) cover.

But the FSB is concerned that the DWP's second report into EL will go little further than the first, which urged insurers to give longer renewal notice periods.

FSB national chairman John Emmins said: "Liability insurance premiums have been mushrooming for over a year and this is the first real change in the relationship between insurers and their clients.

"But the liability crisis will not be solved by longer notice periods and improved customer service alone.

"The government must come up with a detailed plan of action when the DWP publishes its next report in September."

The federation is pressing for concessions from the DWP, including using some of the levy taken by the Treasury from premiums to relieve the pressure on business.

It also wants changes made to address the compensation culture to discourage lawyers from pursuing no-win, no-fee cases.