Small Businesses (Hansard, 27 October 1988)

§ Mr. Trippier

My Department has taken the following steps to encourage small businessesEncouraged the more effective provision of assistance to small firms in rural areas through the merger of the Development Commission and CoSIRA to create the Rural Development Commission on 1 April 1988. 391W Enabled the Development Commission and CoSIRA together to spend £30 million. in 1987–88, compared with £27.5 million. in 1986–87. Published, in January 1988, a new series of planning policy guidance notes. These notes provide concise and practical guidance on planning policies, in a clearer and more accessible form than in earlier departmental circulars and other official publications. They include a PPGN on industrial and commercial development and small firms. Implemented, in November 1987, regulations to allow simplified planning zones. The first two have already been adopted and further proposals are being prepared. Implemented, in June 1987, changes to modernise the Use Classes Order and enable a wider range of changes of use to take place without the need for planning permission. Simplified outdoor advertisement control. Established nine urban development corporations in England to regenerate inner city areas.

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 with £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, trades fairs, tourism, etc. accounted for £6.1 million in 1987–88 compared to £5 million in 1986–87. One project funded was for two pilot schemes to set up local authority One Stop Shops coordinating the activities of LA departments with other organisations helping small firms and start up businesses.

The effect of urban programme assistance on small firms cannot always be separately identified. However, research evidence shows that assistance is targetted closely on small firms particularly those employing fewer than 10 people.

All the planning and land use measures apply to Basildon as elsewhere. In addition, the Secretary of State is considering the first alteration to the Essex structure plan, which will provide for the county's development requirements up to the year 2001. The first alteration contains new policies designed to encourage development providing employment throughout the county and identifies Basildon as a location where such development should particularly be promoted.

Specific measures relating to Wales are a matter for my right hon. Friend the Secretary of State for Wales.

Further proposals by my Department that can be expected to encourage the development of small businesses include the following: An order to extend the Merseyside Development Corporation which is before Parliament. An order to establish an urban development corporation in Bristol which is currently being considered by a Select Committee in the other place. 392W The Rural Development Commission proposals for encouraging the private sector to play a greater role in the provision of workshops for small firms. Review of the planning system to identify further measures to remove unnecessary restrictions on development and to simplify procedures where this is justified. The second stage of a review of building regulations which will cover technical aspects with the aim of ensuring that the legal requirements are easy to unerstand and do not go beyond what is clearly necessary, particularly for health and safety reasons; and that the guidance provided on methods of compliance is clear, simple and accurate.

In addition, the other programmes described earlier in this answer, while not always targeted specifically at small businesses, will continue to benefit them.