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Nigel Griffiths MP

"Better Business, Better Practice" Conference

Nigel Griffiths MP

The Stratford Manor Hotel.


Monday, September 24, 2001


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It is a great pleasure to be here today in Stratford upon Avon . . . to address such a distinguished audience of local government officers and business representatives. My wife is a senior officer in one of our largest councils. I served in local government for nearly a decade and my life has been dedicated to public service, and I believe that the service provided by many local councils and their staff is second to none. And I know from my work in Edinburgh with the business community just how much committed and successful businesses can achieve working with a forward-thinking council. You make a major contribution to the services and the prosperity of our country.

So, for me it is both a pleasure and a privilege to join you today.

The theme of this conference encompasses what we are all trying to achieve - the pursuit of local excellence and the provision of unified working practices, between the business community, local authorities, and consumers.

I want to make the UK the best place in the world to set up and run a small business.

We've already heard from Local Government regulators about a Beacon Council.

You also heard from a local small business network.

My aim now is to give a central government perspective.

Ministerial Aims

As Minister for small business, I have four goals

  • to act as a strong voice for small firms at the heart of Govt
  • to encourage and to promote an enterprise society in which Small business of all kinds thrive and achieve their potential - and do this in every region and in every community and ensure that none of the talents of any group, race, class, gender or age goes untapped.
  • to build in Britain world-class business support services ? ensuring small business get the support they need.
  • And to argue within government against over-regulation, red tape and zealous bureaucracy.

As Minister for Small Business, I want to make sure that business does not suffer from the pressures associated with regulation. I want the regulatory system simplified and to make sure that new and existing regulations do not impose excessive burdens on small business.

I know that you are very concerned about "red tape." So am I. The BCC have told me: "the war on red tape will never be over." And from Michael Heseltine, through John Major to more recent figures too much was promised and too little delivered. I make no promises.

I don't take much comfort from the OECD's report that the UK has less regulation than other countries. Comparisons with other countries mean nothing to the small business trying to stay afloat - here.

That's why every Govt department must "Think Small First".

It's why the SBS is working across Whitehall fighting over regulation.

I've met Lord Haskins to give him my fullest support in attacking over-regulation.

I've discussed with our e-envoy the need to ensure that a telephone directory of guidance is not just transposed into the web - garbage in: garbage out.

I've told Patrick Carter to think the unthinkable when his committee simplifies the payroll tax - and to send the Chancellor the bill.

As long as we have fundamental minimum standards to safeguard workers and the public, and to protect honest and legitimate businesses from dishonest and illegitimate ones, then I firmly support the light touch - and so does the Secretary of State.

I want to make sure that the initiatives that we are promoting through this conference are going to deliver real value.

Enforcement

Enforcement is at the heart of this process. How do we achieve our objectives of protecting consumers through sensible and sensibly enforced regulation, without stifling the small businesses that do so much to create jobs and wealth in local communities across the country?

I welcome this year's Beacon Council Theme of better regulation of business to encourage enterprise and protect consumers.

It ties in with National Standards work being undertaken by DTI, the Office of Fair Trading and LACOTS.

I want to develop national standards to give the UK more effective, fair and consistent enforcement.

The National Standards initiative has three aims:

  • to encourage a common approach to all aspects of enforcement
  • to address differences between authorities
  • and to achieve and disseminate best practice.

The Beacon Council scheme demonstrates a range of good work already being done.

Devon, Barnsley, Kirklees, Sutton and Oxfordshire have all achieved Beacon Council status.

They've demonstrated that they are able to deliver the principles of good enforcement as set out in the Enforcement Concordat.

Barnsley offers a very impressive service to both consumers and businesses.

They've what strong leadership can achieve in tackling deprivation and demoralisation.

Devon has undertaken pioneering work on regulation.

Devon's 'Consumer Watch' is actively engaging local community representatives in the work of the Trading Standards Service;

'Made in Devon' is identifying products which are genuinely local in origin.

Kirklees has created a Regulatory Advice Team with a call centre and the local business partnership. They're also working with socially excluded groups.

The council's approach has a good business focus that is proactive and effective with an independent regulatory advice team.

I'm impressed by the work being done in Oxfordshire with SMEs using the web. The council has balanced enforcement and enterprise.

And there's a comprehensive approach to social inclusion with good examples of development and targeting specific groups like farmers' markets, the elderly and young people.

And the mentoring programme in Sutton demonstrates real innovation. The emphasis is on helping SMEs comply with new and existing legislation by providing a single point of contact for them and a simple aim to offer advice at source, avoiding

the need to take legal action. This is the 'cop and coach' approach I favour.

And they also help socially excluded groups, ethnic minority agencies, women entrepreneurs and disability groups. Food training is being delivered in different community languages.

Local Business Partnerships.

All these initiatives - and many more - deserve praise.

But I want to create a comprehensive network of Local Business Partnerships, where all enforcement officers, from Trading Standards to Customs and Excise, from the Police to Inland Revenue can meet with business to discuss local enforcement regimes.

A network where business can get friendly advice, guidance and training without fearing draconian enforcement procedures.

A network to promote effective enforcement with a "light touch."

I want the views of local authorities and the small business community.

We have channelled half a million pounds into the local network, to enable us

  • to offer financial help to build partnerships,
  • to produce a step-by-step guide to starting a Local Business Partnership, and
  • to create a dedicated Local Business Partnership website.

We are making funding available for a range of initiatives, from publishing a local information leaflet to creating a local quality mark - from training events on certain sectors to business open days.

This is a real chance for the network to make a difference in the way it treats its customers. I urge everyone currently involved in the network to take the opportunity to apply for funding.

And to meet the information needs of networks, we are sponsoring a dedicated Local Business Partnership website.

I am delighted to announce that this goes live today.

"LOCALPARTNERS.ORG.UK" will play a pivotal role in allowing the partnerships to communicate easily with each other and the SBS.

We're enabling local partnerships to feed information on local issues directly onto the site.

Each partnership will have its own page and hyper links.

All the latest LBP news will be available on the site.

Even the Local Business Partnership start-up pack and funding application can be downloaded.

We have an opportunity to use the site today and its creators are here to help and answer any questions.

Today you will also be able to take way a step-by-step guide to starting your own Local Business Partnership. This information pack gives help and guidance for those who are serious about dealing with regulation locally and who want to make a difference.

Wider SBS

Since it was established just over a year ago, SBS has had a number of notable successes

It has :

  • completed the re-contracting for the Business Link local network;
  • launched the High Technology venture capital fund;
  • awarded £75m to create an incubator workspace loan fund;
  • launched the Enterprise Insight campaign;
  • successfully fought proposals for a supplementary business rates;
  • supported Community Finance Initiatives and enterprise development projects from the Phoenix Fund;
  • launched the Farm Business Advice Service in partnership with DEFRA.
  • SBS is jointly funding research on the Enforcement Concordat
  • SBS is developing a Local Authority search engine LARISE
  • SBS is responsible for INFOSHOP, the subject on one of your workshops later today.

No wonder I told David Irwin the first time I met him that I didn't want to launch a single new initiative for a year!

DTI/Government support for small business

Government support for businesses is a vital part of the DTI's activity.

We spend around £1 billion a year, delivered direct to firms or through intermediaries such as Business Links.

We're supporting Trading Standards (TS) through our "modernisation Fund"; which will target Trading Standards priorities :

  • raising TS capability through DTI scholarships,
  • developing distance learning materials,
  • helping to achieve efficiency gains and investing in Consumer Support Networks, which link other local agencies for a more efficient use of resources and targeted quality advice to consumers and business.

I believe we need a more coherent and rational approach to all schemes which support small businesses.

The Secretary of State has set in hand a review of business support schemes.

The "Cost Cutting Review" aims to bring greater coherernce to all government support for small business

My prediction is that these reviews will lead to even more emphasis on small firms and much higher expectations of what the SBS can do to help them.

Conclusion

Finally, I want to return to the importance of locality: small businesses are people. They have roots. They belong to the lively community of entrepreneurs operating across the country, which is one of our great national economic strengths. They belong to a sector - from new media companies to adventure centres. The dry-cleaners, corner shops, the hairdressers - they all belong to a place, a Borough, a District a County or City.

All these identities matter. The government has worked hard to get the economic environment right for small businesses to grow and prosper. We are working with a range of sectors to address their specific concerns.

You have a vital role to play in ensuring the prosperity of your communities. Together we can move Britain forward to secure greater employment and prosperity for all.

Thank you.


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