HC Deb 19 June 2000 vol 352 cc68-70W
Mr. Pollard

To ask the Secretary of State for Trade and Industry what recent measures he has taken to increase the ability of small businesses in the United Kingdom to trade competitively in European markets.[126018]

Mr. Byers

The Government have been working closely with our European partners to improve the environment for small businesses within the European Union. The Lisbon Economic Summit in March made significant progress in this area when agreement was reached todraw up a European Charter for Small Firms to respond specifically to their needs; simplify the regulatory environment at both national and community level; create a Community Patent which is simple and inexpensive to obtain; and update public procurement rules with the particular aim of making them more accessible to SMEs. The European Charter for Small Finns is due to be endorsed at the Feira Council this week. It will send out a clear signal that the European Union is serious about bringing about an environment in which small firms and entrepreneurship can flourish. The Charter will pledge action by the Commission and the member states which addresses the specific needs of small business in the above areas, as well as in others such as skills, taxation and finance, and business support.

The DTI continues to focus much of its efforts on helping business, including small business, to access markets in Europe.

Mr. Chope

To ask the Secretary of State for Trade and Industry what the base level is against which his Department's public service target for 2002 of increasing the productivity and profitability of small and medium sized enterprises assisted by the Small Business Service is to be measured.[125921]

Mr. Byers

[holding answer 14 June 2000]: This Public Sector Target states that DTI will increase the productivity and profitability of Small Business Service' assisted small and medium sized enterprises (SMEs) relative to all SMEs by 1 per cent. per annum from a base level of 12 per cent. for productivity and 14 per cent. for profitability.

1This target relates to businesses assisted by the Business Links and was established on the basis of the findings of the Business Link Value for Money Evaluation (1998).
Mr. Chope

To ask the Secretary of State for Trade and Industry what actions his Department is taking to achieve its key priority for 2000–01 of reducing the burden of regulation on small businesses; and what the criteria are for evaluating success.[125911]

Mr. Byers

[holding answer 14 June 2000]: The Small Business Service (SBS) has a particular duty on behalf of small businesses to examine regulatory proposals put forward by Government Departments to ensure that they do not impose an unnecessary or disproportionate burden on small businesses. This will be achieved by promoting the "think small first" principle. The SBS will also ensure that compliance is made easier through the provision of comprehensible and accessible guidance and that the enforcement regime is appropriate.

By 2001, the SBS will establish a Regulation Index of the impact of regulation on small business. This will measure the cumulative burden of regulation on small businesses, will inform priorities for simplification and will determine the future criteria for minimising the burden of red tape.

In addition, my Department will continue to look for opportunities to remove unnecessary burdens in the legislation for which we are responsible. For example we are increasing the statutory audit threshold for companies from £350,000 to £1 million. This will apply to financial periods ending on or after 26 July, and should benefit up to 150,000 companies.

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