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Mandelson's big pledge
PETER Mandelson told northern businesses yesterday that ensuring small firms have the support they need to get through the economic crisis was at the top of his in-tray.
Giving his first speech as Business Secretary at the Northern Regeneration Summit 2008, Lord Mandelson said the British economy had been caught in a "global whirlwind of extraordinary force" and could not insulate itself from the global financial recession.
He told the conference in Manchester, which included Yorkshire business leaders, that small firms were the "lifeblood of our communities" and outlined plans to streamline the support services available to them.
He said that by March 2009, 30 services – streamlined from 3,000 – will be available to small businesses through Business Link as part of the Solutions for Businesses package.
He said: "That will make it easier for small firms to get essential help in areas critical to their business such as finance, growth, skills, innovation and resource efficiency."
Earlier, in the day he announced plans for the creation of a forum for small businesses to address the problem of curbs on lending as he met chief executives of lending banks at the Treasury. Tony Cherry, chairman of the Federation of Small Businesses in Yorkshire and the Humber, said: "I am interested to see how small businesses could help to act as intermediaries but I don't know why he didn't mention that in his speech (at the summit). We need more than just kind words. Without the actions to back up those words we will see an awful lot of job losses."
He added: "I'm disappointed not to hear that the Government will use small businesses more when it procures its services and spends taxpayers money. It spends many billions of pounds on procurement and it could break up those contracts into bite-size pieces and offer them to small businesses."
Lord Mandelson said his task was to help businesses "weather the worst of the storm" and start laying the foundations of future prosperity, through a fresh approach to business and industry strategy. Developing a strategy for a knowledge-driven economy through creative industries and 'research-intensive' manufacturing services would be an "urgent" priority, he said.
He said: "As Secretary of State for Business, my mandate is clear. It is not, as recommended by the think-tank Policy Exchange to help everyone in the North move to London or Cambridge but to strengthen the industries and sectors that will power our success in the new, global knowledge economy."
Simon Foy, chief economist at Yorkshire Forward, said: "It is a difficult time for businesses in our region and our job is to get out there and do what we can to ensure they can manage any challenges ahead by making support available on the ground and batting for the region when it comes to key issues like retaining HBOS jobs in the region."
The key points
Small businesses are the 'lifeblood' of our communities and are a big part of the solution to the economic challenges.
Britain needs to maximise its strength in the creative industries and research-driven manufacturing, rather than relying on financial services.
Developing the strategy for a knowledge-driven economy will be an 'urgent' priority and the role of regional development agencies crucial.
Switching to a low carbon economy and protecting energy security must not be lost or put back.
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Weather for Yorkshire
Thursday 24 May 2012
Today
Sunny spells
Temperature: 10 C to 25 C
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