3 SBS's influence across government
16. The SBS was only ever responsible for a small
part of the total government budget that provided support to small
businesses and it had no formal authority over the actions of
other government bodies. Since its creation in 2000 it has undergone
a gradual transition from being a deliverer of services to influencing
government to take appropriate actions to support small businesses.
17. In evidence, the SBS considered that a key factor
in securing influence was to remain part of "the Whitehall
village", rather than be outside it as a non-departmental
public body. The SBS also felt that as an Executive Agency of
the DTI, instead of being a unit within the Treasury or Cabinet
Office, the SBS had the advantage of being within the Department
responsible for creating the conditions for business success.[26]
From April 2007 the SBS will lose its executive agency status
and operate as a policy unit within the DTI's Enterprise and Business
Group, responsible for influencing policy affecting small businesses.
18. The SBS has stated that its position within "the
Whitehall village" has enabled it to sound the alarm bell
over the complexity of small business support, leading to plans
to streamline support;[27]
to advocate the adoption of Dutch good practice to reduce regulatory
burdens; and to persuade DEFRA to abandon plans to change regulations
concerning the permitted angles of ramps used to load livestock
into lorries that would have been costly for some small businesses.[28]
19. Surveys of departmental officials' views have
shown an increasing respect for SBS expertise.[29]
Two-thirds of SBS staff have worked in small businesses and a
quarter of those had set up or run their own business.[30]
A NAO survey found that the vast majority of government departments
considered the SBS to be a reliable source of objective and critical
information.
20. These examples are, however, counter-balanced
by evidence of more limited influence. Although 90% of new regulations
affecting small businesses were subject to a meaningful Small
Firms Impact Test as part of the Regulatory Impact Assessment
process in 2004, the SBS nonetheless fell short of its target
of 100%.[31] The SBS
did not judge the quality of the Test, and there was no formal
process whereby the SBS identified which regulatory proposals
were most likely to affect small businesses. Of greater concern,
however, is that Departments considering new regulations consulted
with the SBS at an appropriate time in only half the cases reviewed
by the C&AG. The surveys which demonstrated respect for SBS
expertise showed a declining regard for its ability to set the
Government's agenda on small business issues.[32]
21. Organisations outside government have also expressed
doubts about the extent of SBS influence. The CBI questioned whether
the SBS had the power and attributes to ensure that the needs
of small business were understood across government, or to implement
initiatives so that they would benefit small businesses. The SBS
disagreed but accepted that it does not always get its message
across well to others, and has not been successful at showing
where it has intervened to stop measures that could have been
damaging to small business.[33]
22. The SBS is without a system with which to assess
its success as an "influencer", although the very nature
of the influencing role does not easily lend itself to performance
measurement. At present, however, stakeholders inside and outside
government have little insight into the wider value of the SBS.
That deficiency has been compounded by the lack of good indicators
on other issues that matter to business, such as the burden of
regulation. The lack of good indicators not only makes it difficult
to assess and communicate the SBS's achievements, but can also
prevent lessons from being learned about the need for SBS interventions,
and their effectiveness.
26 Q 11 Back
27
Q 3 Back
28
Qq 12, 52 Back
29
C&AG's Report, para 5.7 Back
30
Ev 5, Note to Q 23 Back
31
C&AG's Report, para 3.6 Back
32
Q 42 and C&AG's Report, para 5.7 Back
33
Q 42 Back
| 
