§ Mr. David ShawTo ask the Secretary of State for Scotland if he will make a statement on the achievements of his Department and his policies in helping small businesses over the last 12 months compared with the previous 12 months; and if he will publish the performance indicators by which his Department monitors those achievements and the statistical results of such monitoring.
§ Mr. Lang[holding answer 19 July 1988]: In recognition of the important role that small firms play in the Scottish economy the Government have introduced a number of schemes of support available from the Scottish Development Agency, the Highlands and Islands Department Board and from the Industry Department for Scotland, where policy responsibility lies. In addition to providing services specific to Scotland, the SDA, HIDB and the Industry Department for Scotland are responsible for the delivery and monitoring in Scotland of United Kingdom services on behalf of other Departments, including the Department of Employment and the Department of Trade and Industry. 1987 saw the achievement of a net increase in the number of registered companies in Scotland by over 2,500 and VAT returns indicate that during the period 1980–85 there was a net increase of nearly 10,000 in the number of new businesses operating in Scotland.
The following describes the services available to small firms in Scotland during the periods 1986–87 and 1987–88 and some of their achievements.
Regional Assistance
IDS made offers to small firms in Scotland of regional selective assistance of £7 million in 1986–87 and £4 million in 1987–88. Under the revised regional development grant scheme, approvals to small firms in 1986–87 amounted to. £47 million and £48 million in 1987–88. Information on the grant offered to small firms under the original RDG scheme is not available.
Belter Business Services and Better Technical Services Schemes
During the periods in question, the BBS scheme was administered by IDS, SDA and the HIDB. The scheme allows small companies to have access to subsidised professional business advice and in 1986–87 some 7,947 offers of assistance were made with an associated value of £3 million. In 1987–88 some 9,597 offers of assistance were made with an associated value of £2.9 million. The BTS scheme was available in Strathclyde and parts of Tayside region and allowed small companies to have access to subsidised professional advice of a technical nature. In 1986–87 some 1,295 offers of assistance were made with an associated value of £0.75 million. In 1987–88 1,720 offers were made with an associated value of £1 million. Support under the BTS scheme ceased on 31 March 1988.
Scottish Development Agency
SDA support for small business includes the provision of financial assistance, premises and a wide range of advisory services, including the small firms service in Scotland and the administration of DTI's consultancy initiatives, under the enterprise initiative. During 1986–87 the SDA had contact with 21,682 small companies. Some £2 million was invested in 716 small firms creating or safeguarding some 670 jobs. In addition, some 845 small companies received assistance with the costs of attending promotional events. Sixty four small companies were provided with technical advice, while 36 received assistance with market research studies. In the year 1987–88, the agency had contact with 19,125 small firms. Some £2.7 million was invested in 692 small firms creating or safeguarding 800 jobs. In addition, 875 small companies received assistance with the 16costs of attending promotional events. Sixty small firms were provided with technical advice while 30 companies received assistance with market research studies.
464WHighlands and Islands Development Board
As well as delivering the small firms service in its area, the HIDB undertakes a wide range of activities in support of businesses, most of which are small, to help them overcome the difficulties of operating in this peripheral and rural part of the UK. The measures taken include financial support to business, provision of factories and assistance with business advice and training. In 1986–87, the board approved 1,247 offers of financial assistance with an associated value of £19.2 million. This generated private sector investment of some £57.8 million and created or safeguarded 2,400 jobs. For the period 1987–88 the board approved 1,063 offers of financial assistance with an associated value of £14.4 million. This generated private sector support of £44.4 million and created or safeguarded 2,700 jobs. In the period 1986–87, the HIDB completed 2,777 sq m of factory floor space. In this period some 2,654 jobs were housed in HIDB factories. In the period 1987–88, the HIDB completed 6,409 sq m of factory floor space. In this period, some 2,920 jobs were housed in HIDB factories.
Local Enterprise Trusts
Local enterprise trusts have proved to be an important feature of the various schemes of support on offer to small businesses in Scotland. The Government have recognised the important contribution which they make in local communities and, in partnership with the private sector, the Scottish Development Agency gave financial support amounting to £0.56 million to 36 enterprise trusts in 1986–87, the latest year for which figures are available. This represented some 20 per cent, of the total funds employed by the trusts. During 1986–87 the 36 trusts had, between them, contact with 20,000 clients from which 2,500 new small businesses were formed. Companies assisted by enterprise trusts created some 6,000 new jobs and some 5,000 jobs were supported or maintained. The SDA bases its financial assistance on its appraisal of each trust's annual management plan which contains details of the previous year's projects and objectives for the future year.
Deregulation
The Scottish Office is participating fully in the deregulation initiative. This has resulted in an improved awareness within the Scottish Office of the needs of business and has led to the introduction of a more systematic approach to assessing the financial and other pressures imposed on business by regulation. Scotland will be the first area of the United Kingdom to set up a pilot project which will provide small businesses with a single access point for advice on Government regulations. The pilot will commence on 1 August.
Public Purchasing
In each of the last two financial years, IDS has organised a number of seminars for small businesses to increase awareness of the opportunities that exist for selling their goods and services to the public service, and how to go about it. These were attended by several hundred small Scottish companies.