John Healey Promotes Enterprise and Skills in Birmingham

Enterprise and high skilled jobs are now the key to long-term prosperity in Britain, the Economic Secretary to the Treasury – John Healey MP – outlined today when he visited the West Midlands. He pointed to the Government’s commitment to take tough decisions to achieve American levels of business creation and ensure that, at every level, Britain has the best educated and most flexible workforce in the world.

While there are 300,000 more businesses in the UK than in 1997, if the UK had a business start up rate equivalent to the US 1.8 million more businesses would be in place. And if the West Midlands had a start up rate equivalent to the most enterprising areas in the UK, it would have an extra 16,670 businesses.

John Healey today led a round table discussion with a group of small businesses, chambers of commerce and Advantage West Midlands (the Regional Development Agency). His speech outlined the importance of small business start-ups, building an enterprise culture, and securing workforce development. He will also point to the recent Pre-Budget Report, which included:

the publication of Philip Hampton’s interim report on rationalising inspection and enforcement regimes;
the extension of Common Commencement Dates to other areas of legislation;
deregulation in the financial services industry;
new rules guiding the implementation of European Union regulations;
significant reductions in compliance burdens for small businesses through the integration of HM Customs & Excise and the Inland Revenue;
measures to improve support for small businesses by challenging the RDAs to use their new devolved powers to go beyond the one-size-fits-all business advice of the past and provide focused, tailored mentoring and support for small firms;
accepting in full the Graham Review recommendations to increase the effectiveness of the Small Firms Loan Guarantee scheme, deregulating Business Angel investors in small firms, and making tax changes to facilitate university spin-outs;
roll out by 2007-08 of the National Employer Training Programme following successful pilots in areas including Birmingham and Solihull, Shropshire, and the Black Country; and
the establishment of the Leitch Review of Skills.

The business consultation visit – the first in a national series – is a chance for local West Midlands firms and agencies to contribute their views to preparations for next year’s Budget.

John Healey said:

“In any modern and vibrant economy the presence of high-growth businesses is vital. Small businesses make a disproportionately important contribution to our economic prosperity. That is why the Government is determined to rise to the challenge of securing an enterprise culture and skilled workforce to ensure American levels of business start up.”

Notes for Editors

1. John Healey is visiting the West Midlands on Monday 13 December 2004. This is the first in a series of regional visits in the run up to the Budget in spring 2005.

2. Mr Healey is visiting the Calthorpe Estate, PricewaterhouseCoopers, Advantage West Midlands, and two businesses that have benefited from the Mustard programme, a high-growth business support service: The Art Lounge and Hall of Fame.

3. Philip Hampton’s interim report, Reducing administrative burdens: effective inspection and enforcement, was published alongside the Pre-Budget Report. It can be accessed at: http://www.hm-treasury.gov.uk/pre_budget_report/prebud_pbr04/assoc_docs/prebud_pbr04_hampton.cfm. Consultation responses are requested before 4 February 2005.

4. The new Executive Chairman of the integrated HM Revenue and Customs, David Varney, has announced the creation of a small business unit, through which he will consult on the scope for a single tax return that would bring together all taxes. He has also set out his long-term objective for a single account for payments.

5. Media enquiries should be addressed to Will Straw in the Treasury press office on 020 7270 4420.

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