Government fails to support small businesses says Norman Lamb

12.00.00am GMT Mon 6th Feb 2006

The latest CBI report Improving Government Services For Small and Growing Business' has been welcomed by Lib Dem Trade and Industry Spokesman Norman Lamb. The report highlights that the Government's business support network is failing to provide "high quality help and advice to new and growing firms," and that more must be done to aid small businesses.

It cites the "baffling array of conflicting, confusing and inconsistent quangos, grants and agencies across the UK", as a barrier to business, with only one in seven firms utilising the Government's flagship agency, Business Link, which costs the taxpayer £140 million per annum. The picture is further sullied by the fact that independent research contained in the report suggests that only 38% of businesses were happy with the general business information the service imparts.

There are 2650 similar schemes throughout the UK funded by a Government budget of £8 billion a year.

Norman Lamb commented, "The proliferation of quangos, grants and agencies across the UK under this Government only serves to confuse small business and inhibit their ability to flourish."

"There is no doubt that providing small businesses with a support network is a worthy cause," he said. "However, for this support network to function effectively information must be easily attainable and match the requirement of the business community."

"It is evident that the Government is not fulfilling its remit," Mr Lamb continued. "It fails to provide the quality of information demanded for business users, and leaves the taxpayer short-changed by manifestly failing to deliver value for money."

"There is a morass of advice which appears to be often confused and unhelpful to business."