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EEDA to help deliver budget commitment to streamlining business support - [11-04-2006]

EEDA to help deliver budget commitment to streamlining business support

The Chancellor of the Exchequer has today announced that business support services are to be simplified.

Working in partnership with the Department of Trade and Industry, regional development agencies (RDAs) and the Small Business Service will work to reduce the current provision of around 3000 business schemes currently on offer in England to just 100 by 2010 – allowing business support provision to become more streamlined and cost effective.

In April 2005 regional development agencies, including the East of England Development Agency (EEDA), took on the contracts for managing the national Business Link network. Since this time all the RDAs have started reviews of their region’s business support provision, and EEDA is already taking action to simplify services by moving to a single Business Link operation for the region.

The announcement comes after the RDAs submitted a document to the government, highlighting the need for business support services nationally to be made more cost effective and cohesive.

Richard Ellis, EEDA Chair said: “The RDAs are committed to providing better services for businesses and we welcome the government’s announcement today. Businesses will be the real beneficiaries of simplified, customer-focused support services, and the consequences of greater business success are economic growth and job creation.”

Terry Hodgkinson, Chair of Yorkshire Forward, which currently leads the RDAs on Treasury matters, said: “Businesses need clearer and more effective support across the UK. People also need to be confident that those support services provide good value for money for them as tax payers.

“Today’s announcement by the Treasury signals a step change in the way business support services are delivered in England – a move that should help more people to establish successful businesses. And by taking on board the recommendations of the RDAs, this budget announcement also demonstrates that when it comes to economic development in the regions, the RDAs are delivering and getting vital information about regional priorities into Government. There is no doubt that this is a challenging target, but we are confident that we can deliver it by working with the DTI and Small Business Service.”

It is understood that a key element of the simplification programme will focus on business advisory services for energy efficiency, a move praised by the RDAs, which have recognised the impact of rising energy costs on business growth.

EEDA has also welcomed plans to invest £100 million to double enterprise capital funds and a 30 per cent tax relief for venture capital trusts – allowing more of Britain’s entrepreneurial talent the opportunity to establish their own business.

The Chancellor also set out the next steps for taking forward the Government’s Science and Innovation Investment Framework 2004-2014, which links developments in science and technology intrinsically to economic growth. Science and innovation has long been heralded as a key to economic success by EEDA, so this commitment by the Chancellor to support further investment in scientific research is warmly welcomed.

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Released: Wednesday 22 March 2006 Press enquiries to:

James Reddy, EEDA press officer

Tel: 01223 484624
Fax: 01223 713951
Email: jamesreddy@eeda.org.uk

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