Press Release: Government promise to small business is a sham
Promise on skills fund is latest demonstration of Labour’s return to spin.
Conservative analysis has today shown that the Government’s announcement on small business support:
o Contains no new money: The £350 million is already allocated to the Train to Gain fund for small businesses.
o Recycles existing services: Most of the supposedly ‘new’ services for small businesses are already provided under the existing scheme.
o Is just the latest in a line of Labour spin on helping businesses in a downturn: It follows promises to the unemployed, to homeowners struggling with their mortgage repayments, to families facing repossession, and others (see Notes to Editors).
Shadow Innovation, Universities and Skills Secretary, David Willetts commented:
“At a time when businesses are worrying about their cash flow, homeowners are worrying about their mortgages, and people are worrying about their jobs, they expect the Government to be on their side. But instead of offering real help, Labour ministers have returned to their bad old ways, spinning and reannouncing old policies to get a headline.
“Instead of spinning non-announcements, the Government should be doing everything it can to help small businesses so that jobs are not lost. That is why we propose allowing small companies in trouble to delay their VAT payments, why we would cut National Insurance for the smallest businesses, and why we would cut small business tax.
“These measures could be implemented immediately and in some cases could prevent companies from going to the wall. When will we see real action from Labour?”
ENDS
Notes to editors:
‘New’ funding is not so new
Today John Denham announced “£350 million of Government funds to help them train their staff”. However, the small print reveals that this money is already allocated to a training fund for small business, and that most of the functions that the Government says are “new” are already standard practice.
For example:
Announcement: “Relaxing the rules to allow workers to get training up to level 2 even if they already have a previous qualification at this level” (DIUS Press Release, 21 October 2008)
New Labour, same old spin: According to the DIUS website, there is training already available: “There is funding available for a number of additional Level 2 qualifications.” (http://www.traintogain.gov.uk/Helping_Your_Business/eligible/)
Announcement: “Brokers to offer tried and tested skills diagnostics and audits so companies can have their training needs more accurately identified; and point SMEs to the right solutions from the most appropriate providers” (DIUS Press Release, 21 October 2008)
New Labour, same old spin: According to the Train to Gain website, brokers already exist: “Train to Gain offers independent skills advice at no cost to your business. The advice comes from a skills broker working with you on a dedicated, one-to-one basis. They’ll help you find the right solution to deliver the skills that can boost your business.” (http://www.traintogain.gov.uk/Helping_Your_Business/eligible/)
Announcement: “Extending DIUS’s successful leadership and management programme so that more SMEs can benefit from it” (DIUS Press Release, 21 October 2008)
New Labour, same old spin: According to the Train to Gain website, this programme is already available for the vast majority of SMEs. “For organisations with 10 to 250 employees, we offer an in-depth skills analysis for owner/managers, plus grant support of up to £1000 to develop leadership and management skills.” (http://www.traintogain.gov.uk/Helping_Your_Business/eligible/)
Announcement: “Relaxing the rules to allow funding for “bite-sized chunks” - small units or modules of qualifications in subjects known to be important to SMEs, such as business improvement, team-working, customer service, and risk management” (DIUS Press Release, 21 October 2008)
New Labour, same old spin: The Train to Gain website states that this is already standard practice: “For small businesses (less than 50 employees), we’ll contribute to the cost of your staff spending time away from work undertaking agreed training”. (http://www.traintogain.gov.uk/Helping_Your_Business/eligible/)