HC Deb 16 September 2004 vol 424 cc1718-20WS
17. Linda Perham

To ask the Secretary of State for Trade and Industry what assistance her Department provides to businesses in London. [189186]

Jacqui Smith

Assistance to business is delivered via a number of different agencies, including the London Development Agency (LDA). In financial year 2003–04, Business Link for London exceeded its key performance targets set by the DTI/Small Business Service, achievingMarket Penetration—82,915 businesses assisted/advised; Customer Satisfaction—86 per cent.; Intensive Assistance—5,160 businesses intensively supported.

The DTI's Grant for Research & Development (GranD) is aimed at individuals planning to start-up businesses in England and at small and medium sized enterprises (SMEs) already operating in England. The grants are offered at the discretion of Government, to help businesses carry out research and development work that will lead to technologically innovative products or processes.

During 2003–04, the DTI/Small Business Service made offers of grant to 145 London start-ups/SMEs. This represented funding in total of just under £9.5 million.

The planned restructuring of business support arrangements in London, that includes the transfer of BL4L contract management and direct delivery of GranD to the London Development Agency from April 2005, will further improve DTI services to customers within the Capital.

In 2003—04, the LDA, which is primarily funded by the DTI: Created or safeguarded 18,017 jobs (including those attributable to foreign direct investment and regional selective assistance); Set up or attracted 1,333 businesses to London; Provided support or advice to 26,937 businesses; and Created 26,683 learning opportunities

In 2003–2004 the LDA invested over £350 million to create jobs, get people into work, support new and existing businesses and create space for businesses, homes and community facilities.

London businesses can also access a small suite of grants, loans guarantees and subsidised consultancy to address a range of business issues provided by the DTI. These include:

Succeeding through innovation:

Providing practical support for the key stages of innovation or research and development. Initiatives include the Technology Programme, which provides some funding and shares some of the risks in taking new technologies to market.

Raising finance:

Supporting small or high growth companies to obtain investment through the Small Firms loan Guarantee, which guarantees loans from banks and other institutions for small businesses with viable proposals. London businesses can access £50 million via the Regional Venture Capital Funds (RVCFs) o provide risk capital finance in amounts up to £500,000 to Small and Medium Size Enterprises (SMEs) who demonstrate growth potential.

Regional investment:

Encouraging investment in specific areas of England to promote economic regeneration. Selective Finance for Investment is designed for businesses that are looking at the possibility of investing in assisted areas. The programme is discretionary and invariably takes the form of grants or occasionally a loan.

The Manufacturing Advisory Service (MAS) in London offers an integrated service providing free information and advice for manufacturers large and small, although diagnostic services undertaken by highly professional MAS practitioners will be targeted on small and medium sized firms.