Axe falls on business support services

THE Government is axing its Manufacturing Advisory Service, and the Growth Accelerator programme as part of spending cuts.

The initiatives are part of the Business Growth Service, a national programme offering support to businesses with the potential to improve and expand, which has been withdrawn.

Leaked documents sent to third party contractors which deliver the services regonally on behalf of the Department for Business, say: “As part of the Spending Review settlement the government has decided to wind down the national delivery of the Business Growth Service.

“The Department for Business, Innovation and Skills (BIS) yesterday issued a formal instruction to providers of the Business Growth Service not to enter into any further contractual commitments with customers after 23:59 Monday 30 November.”

Contractors are also told to : “withdraw from any events where the Business Growth Service has a formal presence, minimising costs wherever possible.”

In a statement small business minister Anna Soubry said: “The most important way we can help small businesses is to continue to secure a strong, growing economy and that’s exactly what this government is doing. We’ll keep cutting red tape and have extended small business rate relief for an extra year, freeing up small firms to do what they do best.

“Where taxpayers’ money is used to provide support, this is best done at the local level which is why we’re providing further funding to Growth Hubs and away from Whitehall.”