Coalition ‘lacks business growth strategy’ – MPs

THE Coalition’s efforts to support business do not add up to a comprehensive economic growth strategy, according to a committee of MPs.

A report published today welcomes the commitment from the Department for Business, Innovation and Skills to be the “department for growth” but criticises the lack of detail in how its plans will be delivered.

The Business, Innovation and Skills Committee warns the Government its good intentions will be undermined if business cannot gain access to working capital and calls on the Department for Business to recognise the needs of different sectors of the economy.

Committee chairman Adrian Bailey said: “The department’s focus on economic growth is welcome but warm words and aspirations are not enough.

“Unless the department develops detailed plans to help industry then this positive message will mean little to UK businesses.

“The banks’ role in providing finance to business is crucial to the success of the economy and this is a key theme in our report.

“The agreement between the Government and banks may look like positive engagement, but the jury will remain out until it delivers real benefits to industry.

“If the economic recovery is to be sustained then both Government and banks need to move quickly from rhetoric to meaningful of support to the private sector.”

The report highlights the Manufacturing Advisory Service as a good example of the Government’s support for business but warns the abolition of regional development agencies could lead to the service losing expertise and wasting resources.

It welcomes the Enterprise Finance Guarantee Scheme as a “positive intervention” but expresses concern at the problems creative industries have had in accessing it.