HISTORIC PRESS RELEASE : John Healey Promotes Enterprise and Skills in Birmingham [December 2004]

The press release issued by HM Treasury on 13 December 2004.

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.”