UK DTI to support smaller firms welcomed

A The Forum of Private Business product story

Edited by the Manufacturingtalk editorial team Sep 21, 2006

The Forum of Private Business has cautiously welcomed the news that the UK Trade and Industry Secretary, Alistair Darling, has pledged to give more support to smaller businesses.

The Forum of Private Business (FPB) has cautiously welcomed the news that the UK Trade and Industry Secretary, Alistair Darling, speaking on Radio 4's 'Today' programme, has pledged to give more support to smaller businesses and to 'streamline and focus' services for them.

The FPB's chief executive, Nick Goulding, thinks there are a number of reasons why the current system is failing smaller businesses: "There has to be a cultural change within government, prioritising and focusing on the needs of smaller firms".

"For example, when new regulations are being dreamed up, the consequences for smaller businesses have to be at the forefront of decision makers' minds." It is thought that the shake-up could include moving services to have closer links with the UK government's Treasury.

Goulding hopes the new plans will address current problems rather than start a completely new support system: "The same problems will re-occur unless the Government addresses current failings.

It is simply not good enough to start from scratch with responsibility for small firms palmed off on the Treasury." However, the FPB is questioning whether the changes will make a big enough impact.

Goulding believes closer links to the Treasury would not solve all the problems with government support for smaller businesses.

"Whilst it is true that closer links to the Treasury may help streamline support services in areas such as taxation, how will this help in other areas such as the reduction of red tape? This is a cross-departmental issue; there are policies that impact on smaller firms in a number of government departments." The FPB is calling for stronger representation for smaller businesses at Cabinet level.

Goulding believes that will help ensure that small firms are taken seriously during decision-making.

"We would like to see a Minister responsible for small firms in the Cabinet, to give smaller businesses a voice at the highest level, currently they are sidelined as one of several responsibilities for the Minister of State for Industry and the Regions.".