Government confirms Business Link's demise

Mark Prisk said the network, subject to speculation about its future for several weeks, is to be shut down due to the amount of money spent on telling entrepreneurs where to get advice.

 

"The regional Business Links have spent too much time signposting and not enough time actually advising," the MP told Real Business. "We're going to wind down the Regional Development Agencies, and as part of those, we'll be winding down the regional Business Link contracts."

 

Prisk said the service, which operates throughout England, will be replaced by a state-funded online platform plus greater use of the private sector and services already offered by organisations such as chambers of commerce. As well as being available via desktops, the new internet offering will be accessible on mobile phones and supported by a call centre.

 

Business Link's closure is part of the government's decision, announced in the Emergency Budget, to abolish England's nine Regional Development Agencies and replace them with Local Enterprise Partnerships between local authorities and private companies. The change is due to be completed by March 2012.

 

Last week, an analysis of 46 government websites revealed that the current Business Link national site is the most expensive at an annual cost of £35m or £2.15 per user. Ministers say they plan to close down up to 75% of more than 800 publicly funded websites and force those that remain to reduce costs by half. 

 

 

The regional Business Links have started to react to the news. In an interview with the Express & Star, a Midlands local newspaper, Lorraine Holmes, chief executive of Business Link West Midlands, said: "It is disappointing that Mr Prisk is choosing to make policy in the media without due consideration to the consequences for our employees and the future of the service. It is also disappointing that no consultation has yet taken place. Staff are committed to continuing to provide a high level of service to our customers, despite the uncertainty."

 

UPDATE (30/06/10 16:35):

 

The Liverpool Daily Post has quoted a source at the North West Development Agency, which funds Business Link North West, saying reports that Business Link is to be shut down are "premature". The source told the newspaper: "A report is being done into Business Link over the next four weeks and as far as we are aware no decision has yet been made."

 

BusinessZone.co.uk contacted the Department for Business, Innovation and Skills which issued this statement: "The Coalition Government is committed to replacing Regional Development Agencies with Local Enterprise Partnerships. We are working with the Regional Development Agencies to enable this transition. We are reviewing all the functions of the RDAs. We believe some of these are best led nationally, including responsibility for business support. The forthcoming White Paper on sub-national economic growth will set out our approach in more detail."