Help package is welcomed
LOCAL business leaders have welcomed the Government’s £350m package of support to help smaller firms weather the economic storm.
And chief executives of leading banks have been summoned to a meeting tomorrow with the Government in the latest move to help small firms cope with the economic downturn.
New Business Secretary Lord Mandelson said the meeting aimed to impress on bankers the importance of continuing to lend to smaller firms at “competitive” rates similar to those offered last year.
The Government said its package directly targeted issues small businesses had highlighted including access to credit, cashflow problems and staff training to boost productivity. The package pledged £350m to improve skills by making training simpler to access.
Federation of Small Businesses’ North-east regional chairman Colin Stratton said: “Small firms need all the help they can get when it comes to training their staff. It is crucial that training is appropriate and affordable for the smaller employer.”
Chris Roberts, regional director of the Learning and Skills Council (LSC) North East, said the announcement will “have a major impact on small and medium sized businesses across the North-east, enabling them to take advantage of new measures to make training their employers easier than it has ever been before”.
Business and Enterprise North East (BENE), also welcomed the package of business support measures.
It said they will complement a number of initiatives jointly introduced by regional development agency One NorthEast and BENE, which is responsible for delivering Business Link services across the region, to support businesses in the North-east facing the effects of a changing economic climate.
BENE and ONE are also looking to introduce a mentoring service for businesses and are working on a strategy to assess the financial impact of changes and identify those services which will best support companies in meeting these challenges and planning for future development.
One North East’s director of business and industry, Ian Williams, said: “Business Link is a crucial resource for firms at this time and we’re working closely with the service to ensure businesses in the region can access all the support they need.
“This additional package will help firms take some really practical steps to protect themselves, by identifying future issues as early as possible, making sure their staff have the skills they need to help the business become more efficient or to diversify into new markets, and by accessing finance or support to save energy.”
