Collinson renews attack on funding scheme

BUSINESS lobby group Private Sector Partners has again blasted the Government’s financial package for cash-strapped businesses.

Having already condemned the Enterprise Finance Guarantee scheme, the  North West-based organisation today turned its fire on the Capital for Enterprise Fund, which it describes as “a dinghy against an aircraft carrier”.

PSP represents more than 100,000 firms regionally. Its leader, veteran entrepreneur Len Collinson, said the CEF is failing to deliver much more than headlines for the Government.

He claims that in the last six months just six cash offers have been made worth just over £6m – around 8% of the fund.

Mr Collinson said: “This simply isn’t working. It is ill-thought out and ineffective. No-one who understands small businesses would believe this fund could make any real difference.

“The Government has to get beyond its fixation with grabbing headlines through bold promises and offers of jam tomorrow.  We need measures that can bring real benefit quickly and efficiently.

“The Government would do well to exert greater pressure on public bodies to pay invoices within 10 days.  That was a good pledge.”

Mr Collinson asserts that even if the CEF was being administered properly, its impact would be negligible.

“Some small firms could be helped but we’re looking at a handful, a few hundred,” he said. “The stark reality is that between 30,000 to 50,000 firms, if not more, need equity funding. The fund has been, and will be, about as useful at fighting the recession as dinghy is against an aircraft carrier.”

The CEF is part of a £20bn package of measures announced in January by the Government. It is an equity fund, not a loan, targeted at businesses with growth potential that need long term capital.