Whitehall support
schemes get makeover
By
Richard Tyler (Filed:
19/04/2004)
The Department of Trade and Industry has
announced its new-look £500m suite of business support
schemes, which it promises will be more accessible to
small firms.
The launch comes more than two years
after Patricia Hewitt, Secretary of State for Trade and
Industry, said she wanted to rationalise the existing
183 schemes because they were "hugely confusing" and had
"wasted a lot of money".
There are now nine main programmes
sitting under the headings of innovation, best practice,
raising finance and regional financial support.
A tenth will be added next year, when
enterprise capital trusts - designed to provide between
£250,000 and £2m of finance to growing firms - secure EU
state aid clearance.
The choice of schemes appears to reflect
themes the DTI knows will appeal to the Treasury, which
holds the purse strings. But they also draw on the
requests of business groups.
Prominent are those to encourage firms to
exploit technology. There are £150m of grants available
under a new three-year technology strategy.
So far the DTI has called for
applications from companies working in a range of
specialisms such as nanotechnology, bioprocessing and
advanced materials. Further calls for applications will
be made each October and April from next year.
Of the 183 legacy schemes, some such as
the technology companies schemes (now called knowledge
transfer partnerships), have been simply rebranded.
Thirty four schemes have been either shut
down or almagamated with other services, including
heavily promoted organisations like UK Online for
Business, which will now be delivered by advisers based
at the network of Business Link offices around the
country.
Another 19 schemes are being wound down
or have yet to be dealt with.
"What we have tried to do is simplify the
product set and the ways that small businesses find out
about it," said a DTI spokesman.
Andrew Sugden, director of policy at
North East Chamber of Commerce, said: "The rationale for
the change, to simplify business support, is welcome.
But until we see how it is delivered, we will not know
whether the confusion has been addressed."
From next April, all small business
support schemes will be administered and delivered
locally, with the regional development agencies in
England setting the priorities of those Business Links
on their patch.
The DTI will remain the main contact
point for larger companies looking for guidance and
financial support.
Mr Sugden said: "The difficulty we have
is that the support available to businesses is entirely
down to each firm's circumstances. There is no single
point of contact.
"There are some businesses out there that
are supreme grant-finders. They are able to find funding
for all sorts of areas of their business."
Matthew Fell, the CBI's head of
enterprise, said: "The single most important thing for
us is to say, 'OK, this is heading in the right
direction at the national level'.But the key is how does
that translate to regional and local level?"
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