It isnt true, it is one interpretation of the HSE guidelines though. The new CDM regulations does mean things like that need to be thought about on domestic sites.
overview guidance from HSE on construction site supplies is found in HSG150:
http://www.hse.gov.uk/pubns/priced/hsg150.pdf
(even thought the link says "priced", it's free to download now, as are most HSE publications).
Look under "electricity" on pages 94-97.
Special locations and conditions (e.g. confined spaces) excepted, 110 V and/or cordless are highly recommended, and use of 230V tools is recommended to be "more appropriate to dry indoor sites where damage from heavy or sharp materials is unlikely."
One warning, though - if you want to read around electrical safety in construction, most HSE publications talking about this (even the newer ones) refer to a currently out-of-print HSG141 "Electrical Safety in Construction". I think the more resourceful may be able to obtain it, but if not it should be available from a library ??
This has a telling tale on page 11:
"if, having considered the hierarchy of risk control, a mains voltage (230 V) supply is selected for portable tools and equipment, additional precautions must be provided to reduce the risk to an acceptable level (see paragraph 70)."
And para 70 has a number of effective "conditions", e.g.:
-RCD must be used
-RCD operation to be checked daily with test button, and inspected weekly together with the equipment it is supplying during a formal visual inspection.
-RCD must be tested every 3 months by an electrician using appropriate test equipment.
along with other recommendations about the tools/equipment itself (e.g. must be fit for purpose, should be double insulated, etc.).
Conclusion:
HSE guidance is that 110 V RLV system should be used to "effectively eliminate" shock risks on construction sites. 230 V can be used, but only after risk assessment and suitable implementation/control measures are in place.