Government spends £2.5bn advising businesses on how to get advice!

The Conservative Party has outlined its proposals to fix the Government's business support system, which has been described as both "complex" and "out of control".

The Party's Small Business Task Force, chaired by Doug Richard of Dragons' Den fame, says that currently there are an unbelievable 3,000 business support schemes being run in the UK at a cost of over £2.5 billion. Around two thirds of that sum is spent simply telling businesses where they can find further advice.

The key recommendations in the report are to improve business information, advice and support including the development of a single national web-based Business Information System; improving access to finance for SME's; helping small businesses secure more Government contracts; and overhauling enterprise education in schools.

Doug Richard, Chairman of the Task Force said:

"The current bureaucratic system is confusing, out of control, and wastes millions of pounds. It cannot be an efficient use of funds for two thousand organisations to administer three thousand schemes. It is shocking that a third of the money spent by RDAs goes nowhere near businesses and is spent instead on administration.

"Our recommendations would create a single, web-based Business Information System and an open market for expert advice, in which the needs of the customer – business – would come first. Further, we have set out ways to improve access to finance and help small firms win more state contracts. Together these recommendations would enable the UK to once again become one of the best places in the world to do business."

Mark Prisk MP, Shadow Minister for Enterprise and Small Business added:

"Labour has turned the business support system into a muddled mess. I pay tribute to Doug Richard and his team for providing a radical and modern alternative to this Government's bureaucratic nightmare. We now intend to consult with businesses, large and small, to see how a future Conservative government could make Britain the best place to start and run a business."