The Federation Of Small Businesses is calling on the government to maintain and improve a successful scheme that rewards local authorities for supporting SMEs and entrepreneurs.
The FSB says that the government should recognise the success of the Local Authority Business Growth Incentive Scheme by extending it’s life span.
Instead there are plans to bring in a new scheme that would reduce the amount of money that is put into the scheme by two thirds.
Over the last three years Local Authorities have received government payouts of £300million per year for successfully promoting economic growth in their area. Plans to reduce the funding to £100million has infuriated FSB who see the figure as inadequate.
The original scheme was a success and should be extended, argue the FSB:
“The LABGI scheme has been a great success and should be extended in its present form. It has encouraged councils to work harder to support economic and business development in local areas.
“But the money it raises must not get lost in council finances. It should be ring-fenced to support the success of local businesses in the future.
“Given the economic hardships that many are facing at the moment, a less generous scheme to support local businesses is exactly the wrong thing to do. Extending and improving the existing LABGI scheme would be a shot in the arm for the 4.5 million small businesses that generate over half of the UK’s wealth.”
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