Small Businesses (Hansard, 13 June 1986)

§ Mr. Trippier

Overall responsibility for the small firms sector was transferred to the Department of Employment on 3 September 1985. A sharper focus has been given to that work with the transfer and the promotion of enterprise and job creation are now major priorities in the Department's objectives. The Department also monitors and seeks to influence relevant measures being introduced by other Departments, so that they will benefit the sector, whilst in England the regional enterprise units represent and promote the Department's interest in enterprise, small firms, deregulation and tourism at a regional and local level. Measures introduced by the Department of Employment in the past year designed specifically to help small firms are as follows:

Deregulation The Government's commitment to reduce unnecessary burdens on business has particularly benefited small firms. Two White Papers have been published on deregulation—"Lifting the Burden" (Cmnd. 9571) in July 1985 and "Building Businesses…Not Barriers" (Cmnd. 9794) on 22 May 1986. The recent White Paper sets out progress since 345W "Lifting the Burden" and announces a package pf 80 further proposals. Of these further proposals, 14 concern employment and health and safety legislation.

Loan Guarantee Scheme This scheme was extended for a further three years in the 1986 Budget. The cost to borrowers through the premium payable has been reduced from 5 to 2–5 per cent.

Local Enterprise Agency Grant Scheme A five year scheme of financial assistance designed to establish a network of viable self-supporting enterprise agencies was introduced on 1 April 1986. £2–5 million in grants is being made available in the first year.

Enterprise Allowance Scheme The Manpower Services Commission has expanded this from 65,000 places in 1985–86 to 86,000 places in 1986–87. The 13-week qualifying period of unemployment has been reduced to eight weeks whilst greater emphasis is now being given to counselling and training for applicants.

Advice and Information A major priority has been to make information and advice more accessible to the self-employed and small business men through the small firms service, local enterprise agencies, the Manpower Services Commission's agencies, the Manpower Services Commission's jobcentres and the publication "Action for Jobs".

Training The Manpower Services Commission has been refocussing its adult training programme at the Department's request to take greater account of small firms' training needs. Its training for enterprise budget has been increased from £14–3 million in 1985–86 to £18–8 million in 1986–87 and the number of people expected to benefit is over 46,000 (as against 25,000 in 1985–86).

Late Payment of Bills A practical guidance booklet entitled "Payment on Time" was issued on 19 May 1986 in conjunction with a number of industry organisations with the aim of fostering closer co-operation between buyers and suppliers and reducing the time taken by customers to pay their bills. This has been widely circulated to both public and private sector organisations.

Regional Enterprise Units Eight regional enterprise units have been established in England to promote the Department's interests in enterprise, small firms, deregulation and tourism at a regional and local level.

Inner Cities Initiative The Government launched this initiative on 6 February 1986, under the overall responsibility of the Paymaster General, to improve the impact of Government spending in inner city areas on the employment problem of residents and to work up new approaches. Task forces have been set up in eight pilot inner city areas and among other ideas, they will certainly be considering additional help to small businesses in their areas, and how new business can be attracted to them.

Health and Safety The Health and Safety Commission now has an employer representative nominee with special responsibility for the interests of small firms. In addition, training for inspectors on the problems of small firms has been introduced by the Health and Safety Executive.

Employing People The Department is proposing to exempt firms with fewer than ten employees from the requirement to allow a woman to return to work within 29 weeks after the birth of a child. The Department has also produced a simplified guide to employment legislation for small firms' advisers, along with a model employment form and notice board kit aimed to help small firms in particular. In addition, The Advisory, 346W Conciliation and Arbitration Service has published a booklet for small firms with information on various aspects of employing people.