HC Deb 22 July 1988 vol 137 cc851-2W
Mr. David Shaw

To ask the Secretary of State for the Environment 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. Ridley

[holding answer 19 July 1988]: The list of achievements provided to my hon. Friend last July can be updated as follows: Published a new series of Planning Policy Guidance notes, and a parallel series of Minerals Planning Guidance notes which provide concise and practical guidance on planning policies, in clearer and more accessible form than in earlier Departmental circulars and other official publications. These include a Planning Policy Guidance note on industrial and commercial development and small firms. Introduced revised enquiries procedure rules which should help to speed up planning appeals involving enquiries. Simplified outdoor advertisement control. Brought back into use or disposed of unused public land on the land registers. This increased to 12,100 acres in 1987 compared with the revised 1986 figure of 9,200 acres. Enabled local authorities to provide financial assistance for privately let housing accommodation (Local Government Act 1988) and recently increased the maximum amount of assistance to between 50 per cent. and 75 per cent. depending on area. The Housing Bill currently before Parliament proposes to deregulate rents on new lettings. This will allow landlords to obtain a competitive return on their investment. Provided for increased competition in the provision of certain local authority services under the Local Government Act 1988. Encouraged the more effective provision of assistance to small firms in rural areas through the creation of the Rural Development Commission (formerly the Development Commission and CoSIRA). The Rural Development Commission spent £30 million in 1987–88, compared with Development Commission expenditure of £27.5 million in 1986–87, from which they funded provision of 177,443 square feet of factory space by English Estates (with a further 286,008 square feet under construction at the end of the year) and 63 factories built in partnership with local authorities. Approval was given for 336 redundant building grants, and other help and advice was given to over 19,000 client firms, who were thereby enabled to attract over £20 million in loans from the private sector. The Department uses these and a range of other performance indicators to monitor the Commission's operations. Established three new Urban Development Corporations—Sheffield, Leeds and Central Manchester—and extended the Black Country Development Corporation. Subject to parliamentary approval a further UDC will be established in Bristol and the Merseyside Development Corporation extended.

Provided the following assistance under the Urban Programme: In 1987–88 £19.6 million Urban Programme expenditure was allocated to the provision of new or converted industrial units for small firms. This compared with £11.6 million allocated in 1986–87. Many of these units are small (less than 2,500 square feet) and in areas where the private sector is unwilling to make such provision. Support is also given to preparatory works such as reclamation and assembly of sites, intended to make land available for industrial development by the private sector. £9.3 million was allocated to this in 1987–88 compared to £6.6 million in 1986–87. In addition, expenditure on highway access works to assist development accounted for £7.8 million in 1987–88 compared to £6.2 million in 1986–87. Direct loans and grants to firms chiefly to help with high inner city land and building costs and to businesses in Commercial and Industrial Improvement Areas accounted for £12 million in 1987–88 compared to £9.8 million in 1986–87. General environmental projects to improve physical conditions and raise private sector confidence accounted for £6.8 million in 1987–88 compared to £4.6 million in 1986–87. Advisory services to small businesses accounted for £3.9 million in 1987–88 compared to £5.1 million in 1986–87, and additional miscellaneous expenditure on business promotion, trade fairs, tourism, etc. accounted for £6.1 million in 1987–88 compared to £5 million in 1986–87.

The Department monitors this expenditure through a range of performance indicators. Performance against these measures is set out in detail in the annual reports on the urban programme published by this Department. The annual report on urban programme expenditure in 1986–87 is currently available free of charge from my Department. The annual report for 1987–88 is due to be published towards the end of this year.

The effect of urban programme assistance on small firms cannot always be separately identified. However, research evidence shows assistance is targeted closely on small firms, particularly those employing less than ten people.