Small Businesses (Hansard, 22 July 2004)

§ Nigel Griffiths

A number of steps have been introduced to help small businesses including an increase of capital allowances to 50 per cent. and raising VAT registration threshold to 58 per cent., all of which helps small businesses in south Tyneside.

The Employer Training Pilot, run in Tyne and Wear for the last 15 months, is being made available to businesses throughout the north east. This helps businesses to improve workforce skills by providing training tailored to their needs. The main source of publicly funded business support is Business Link Tyne and Wear (BLTW).

Core funding of £2.2459 million provided to Business Link Tyne and Wear (BLTW), laid the foundation on which they are planning to source additional funding projected at £14.5 million for the benefit of businesses in Tyne and Wear, for the year 2004–5. Such funding and the creation of partnership working allowed the following to be delivered within Tyne and Wear.

Around £7.5 million was made available to SMEs based in the sub-region in 2003–04 as part of projects managed by BLTW.

Businesses benefited from a range of Workforce Development services to help SMEs achieve the Investors in People Standard (liP) and develop their workforce.

Financial subsidies up to 45 per cent. towards consultancy can be accessed by businesses of any age or size issue. Around £4 million is available for this purpose.

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SMEs benefit from up to 45 per cent. funding towards the cost of exhibition space, and design, build and dressing of stands. BLTW have held three 'Meet the Buyer' events over the last two years as a means for local SMEs to meet buyers from both within and beyond the region, offering them the opportunity to become integral cogs in supply chains. BLTW also recently hosted an 'Access to Finance' event, where SMEs met Hinders. This was attended by 30 funders and over 100 SMEs.

Unsecured loans of up to £15,000 are available to SMEs in the NE that have difficulty accessing finance elsewhere. The SMEs must work with a mentor and repay the loan within five years.

A Business Link adviser is currently based at TEDCO's premises in Jarrow providing advice and support to south Tyneside businesses. Business adviser will soon be based in south Tyneside metropolitan borough council premises, and in south Tyneside College two days a week.

In addition a Tyne and Wear Small Business Fund, through ONE NE's Single Programme Funding, of a 50 per cent. Capital Equipment Grant of between £500 and £2,500 available to pre-start and new businesses—up to 12 months old.

Supplementing the support available from BLTW, south Tyneside metropolitan borough council and south Tyneside Enterprise Agency, TEDCO run a number of their own initiatives to support SMEs in the south Tyneside borough. These initiatives are outlined as follows:

South Tyneside metropolitan borough council:

Tyne and Wear Small Business Grant;

50 per cent. of eligible costs up to £5,000;

New businesses up to 36 months old;

Supports projects from a wide range of sectors with a capital spend of at least £2,000.

Major Business Grant Fund:

£20,000-£ 100,000;

New and established businesses in most sectors;

Encourages major investments into the borough which support the attraction, creation retention and rescue of significant jobs and businesses.

Youth Employment Grant:

Up to £3,000 on 30 per cent. basis over first year;

Established businesses in all sectors;

30 per cent. of the first years basic wage costs in a new, full-time, permanent post, for a person of south Tyneside, under 25 years of age.

TEDCO:

Business Start-up

Access is available to the Tyne and Wear Business Start-up service, for individuals to access advice and support on all aspects of starting and running a business. The trend for business start-up is an upward one, in 2001, 50 start-ups were recorded for south Tyneside rising to 83 or 2003.

There is close partnership working with South Tyneside Credit Union's STRIDE and the citizen's advice bureau on ant-poverty and projects focused on 519W wealth creation and retention. Total funding for these activities in Jarrow since 1997 has been in the region of £311,000.

Business Development.

Business Development support activities include Outreach counselling, E-commerce, Marketing Support, Business Planning, Cluster Development, Workforce Development, graduate and under graduate placement programmes and support with grant applications for expansion and growth. Total funding for the counselling and consultancy aspects of this work has been in the region of £230,000.

Grant Funding:

Grants for local businesses have been accessed through south Tyneside to promote growth, competitiveness, support expansion and inward investment. There have been two sources of this funding, a Major Grants Fund, and the south Tyneside Development Fund. It is not possible to ascertain an exact split of funds, but in broad terms, since 1997 Jarrow businesses have received £200,000 from the Major Grants Fund and £100,000 per annum from the Development Fund.

Other Sources of Funding.

Further financial support has also been available through The Department for Work and Pensions, e.g. InBiz and also through DTI Regional Selective Assistance although it has not been possible to establish how much.