Small Businesses (Tynemouth) (Hansard, 22 April 2004)

§ Nigel Griffiths

In his budget statement my right hon. Friend the Chancellor announced a number of steps to help small businesses including an increase of capital allowances to 50 per cent. and raising VAT registration threshold to 58 per cent. all of which helps Small Businesses in Tynemouth.

The Chancellor also announced that the Employer Training Pilot, which has been running in Tyne and Wear for the last year, would be rolled out and made available to businesses throughout the North East. This helps businesses to improve the skills of their workforce by providing training tailored to their needs. The programme not only offers free tailored advice on training but also the unique prospect of subsidised training and wage compensation to employers for the time workers are away from work—traditionally one of the biggest barriers to training in smaller companies.

The core funding provided to Business Link Tyne and Wear, has provided a foundation on which the Business Link has sourced additional funding projected at £14.5 million for the benefit of businesses in Tyne and Wear, for the year 2004–05.

Around £3.5 million of this is available, including a subsidy of up to 50 per cent. for management development training and upskilling the workforce to SME's across Tyne and Wear.

Businesses can also benefit from a range of Workforce Development services to help SMEs achieve the Investors in People Standard and develop their workforce. One business based in Tynemouth, received 50 per cent. subsidy to help them towards paying their Investors in People assessment fees. SMEs with between 615W 5 and 49 employees are also eligible for additional funding towards helping them to reach the standard. In the past, financial subsidies towards consultancy costs were only available to businesses over 36 months old, and these were restricted to specific projects. Now, a subsidy of up to 45 per cent. can be accessed by businesses of any age or size towards the cost of any business related consultancy. Around £4 million is available for this purpose.

Local SMEs can also benefit from up to 45 per cent. funding towards the cost of exhibition space and the design build and dressing of a stand. In conjunction with this, Business Link Tyne and Wear have held three `Meet the Buyer' events over the last two years as a means for local SMEs to meet buyers from both within and beyond the region, offering SME's the opportunity to become integral cogs in supply chains.

Business Link Tyne and Wear has helped a number of businesses in the Tynemouth area to access financial assistance, one such SME received a 45 per cent. subsidy to help them to develop their website. They also went on to receive an additional 50 per cent. subsidy towards the cost of training, to enable staff to update the website once developed.

In addition, a restaurant in Tynemouth, received 50 per cent. funding towards Management Development training, they also had consultancy assistance, to help them to develop a marketing strategy.

Unsecured loans of up to £15,000 are also available to businesses in the North East that have had difficulty accessing finance elsewhere. Businesses must work with a mentor and repay the loan within five years.

Over the past 15 months Business Link has received 660 inquiries from existing businesses and people looking to start their own business in North Tyneside. Of these, 43 existing, and 22 start up inquiries were from Tynemouth. 670 businesses have started in North Tyneside. They are offered an independent service of one-to-one 'counselling' and given intensive advice on business planning, marketing and finance.

An adviser from Business Link and North Tyneside Council's advisers work side by side at North Tyneside Council's premises in North Shields to provide advice and support to businesses based in North Tyneside, including Tynemouth. In addition, an adviser is based in Tynemouth and North Tyneside Colleges two days a week to offer advice to anyone that is looking to start or already running a business.

Tyne and Wear Small Business Fund, through the Regional Development Agency's Single Programme Funding, (Managed by Tyne and Wear Development Company and delivered by each local authority) is a 50 per cent. Capital Equipment Grant of between £500 and £2,500 available to pre-start and new businesses—up to 12 months old.

The Regional Service for Clustering (RSC), also funded by the Dti, through the RDA, helps groups of SME's collaborate support across Tyne and Wear—this project is based in North Tyneside.

North Tyneside Council also provides free business advice and guidance to all businesses setting up in North Tyneside.

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