Written Answers to Questions
The following answers were received between Tuesday 15 September and Wednesday 16 September 2009
Business, Innovation and Skills
Billing
Lorely Burt: To ask the Minister of State, Department for Business, Innovation and Skills what steps the Government are taking to help small and medium-sized enterprises whose customers do not pay in accordance with agreed contractual terms. [285671]
Ms Rosie Winterton: The UK was one of the world's first countries to introduce late payment legislation in November 1998. It provides all businesses with the right to claim interest for the late payment of commercial debt, and where there are no pre-agreed payment terms, the legislation provides that the payment period is 30 days from the later of either delivery of goods or receipt of invoice.
Over half of UK business transactions are not covered by pre agreed payment terms so we are also equipping business to better manage customer relationships and cash flow management through a series of guides developed in partnership with the Institute of Credit Management, the CBI, IoD, FSB, FPB and BCC.
Further advice on this legislation and claiming interest for late payments can be found at:
Lorely Burt: To ask the Minister of State, Department for Business, Innovation and Skills what steps the Government have taken to encourage (a) private sector companies and (b) public sector organisations to sign up to the prompt payment code. [285672]
Ms Rosie Winterton: My noble Friend the Secretary of State and for Business, Innovation and Skills has written to over 1,500 UK businesses and the Minister for Economic Competitiveness, Small Business has hosted prompt payment events with businesses, supported by the Confederation of British Industry, Institute of Directors, Federation of Small Businesses, Forum of Private Business and the British Chamber of Commerce.
All central Government departments have signed the prompt payment code and my officials are working with the regions to promote the code to the wider public sector and to businesses.
Regional Ministers are taking a strong lead in driving prompt payment. For example, the Minister for the West Midlands acted in March 2009 to encourage public sector organisations in the region to sign up to a 10 day
payment pledge; 44 have done so thus far and further action is now being taken to encourage more to do so.
Building Colleges for the Future Programme
Mr. Evennett: To ask the Minister of State, Department for Business, Innovation and Skills what recent discussions he has had with representatives of further education colleges on the Building Colleges for the Future programme. [288229]
Kevin Brennan: With regards to the Building Colleges for the Future programme, I have met and discussed the current issues with the sector body-the Association of Colleges and the 157 Group. In terms of the programme's implementation, this is the responsibility of the Learning and Skills Council (LSC). The LSC, in its work to resolve the current funding pressures with the programme, has consulted widely. This consultation has been in-line with the recommendations of Sir Andrew Foster, and has included the Association of College's capital reference panel. I have subsequently been kept informed of progress.
My predecessor and I have held meetings to discuss the positions of individual colleges. Importantly, such meetings must be without prejudice to the statutory responsibility of the LSC for determining capital approvals.
Business: Government Assistance
Mr. Hoban: To ask the Minister of State, Department for Business, Innovation and Skills pursuant to the answer of 2 March 2009, Official Report, column 1341W, on business: Government assistance, what assessment he has made of the likely effects on levels of borrowing by small businesses in the next 12 months of the operation of the Working Capital scheme. [261653]
Ms Rosie Winterton: We have taken steps to help improve cash flow, to increase the availability of the credit businesses need, and to encourage investment so that businesses come through the recession ready to grow.
In particular, we obtained bank lending commitments from RBS and Lloyds to lend £27 billion additional lending to businesses this year. This includes lending guaranteed under the Working Capital scheme.
In addition, we introduced a Trade Credit Insurance top-up scheme which provides protections for firms suffering a reduction in cover.
We have also taken steps to assist small businesses to overcome short-term cash-flow problems-for example the Enterprise Finance Guarantee and also measures to ensure prompt payment by both public and private sectors.
Mr. Lancaster: To ask the Minister of State, Department for Business, Innovation and Skills what support his Department is providing to small and medium-sized businesses in Milton Keynes. [280879]
Ms Rosie Winterton: Department for Business, Innovation and Skills support to small and medium-sized businesses in Milton Keynes is provided through South East England Development Agency (SEEDA).
SEEDA provides a full range of support mechanisms to small and medium-sized businesses operating in Milton Keynes. The support falls into two broad categories:
1. Strategic Business Development and Engagement-comprising the Sub Regional Partnership and Employment and Skills Board (MKELP) and Milton Keynes Science and Innovation, for example.
2. Business support-primarily through Business Link, Manufacturing Advisory Service, Continuous Employment Support Service, and Financial Assistance.
More detailed information can be found in the attached SEEDA-produced background information.
1. SEEDA Specific Milton Keynes Strategic Business Development and Engagement
Sub Regional Partnership and Employment and Skills Board (MKELP)
SEEDA funds the Milton Keynes Economic and Learning Partnership (MKELP) with the purpose of bringing together business and the public sector in Milton Keynes to agree and align priorities and investment at local and sub regional level. MKELP is also financially supported by Milton Keynes Council and the Homes and Communities Agency.
Works to align regional and local economic strategy to benefit businesses and local stakeholders in Milton Keynes.
Understands employer issues in Milton Keynes and makes regional partners aware of these issues and challenges.
Identifies key growth/economically important sectors and works closely with Sector Skills Councils (SSCs) to help them raise employer demand and investment in skills and encourage employers to engage with and drive the work of their SSC.
Development of the Partnership's approach to the knowledge economy and the Science and Innovation agenda, encompassing, for example, the Innovation Growth Team, Electric Vehicle infrastructure for the city and inward investment, as well as supporting the bid for Milton Keynes to be a host city in the 2018 Football World Cup and developing a strong higher education offer for local businesses.
Milton Keynes Science and Innovation (MKSI)
Local partners in Milton Keynes are developing a vision to "create the most exciting habitat in the UK for knowledge intensive business" in Milton Keynes. SEEDA is a key stakeholder in this steering group, drawing on its 'know how' and expertise in developing and implementing science and innovation activity elsewhere in the region. SEEDA is also funding a full time project manager to drive the initiative forward.
Milton Keynes South Midlands (mksm) Growth Area
SEEDA (with East of England Development Agency and East Midland Development Agency) has been working with Local Authorities and stakeholders to support the mksm growth area. An Economic Development Plan is being produced focussing on supporting key growth business sectors across mksm with an underpinning skills strategy. The aim is to ensure the jobs target for mksm and Milton Keynes is achieved and includes high quality jobs in the knowledge economy and growth sectors.
Progress has been presented to the mksm local authority Leaders group and mksm is aiming to have a final Economic Development Plan by October 2009. This plan will feed into a developing Multi Area Agreement which will include Transport objectives and actions.
2. Direct Support to Businesses in Milton Keynes which is also available to all businesses in South East
Business Link and Enterprise Gateway
| MK Businesses support interventions( 1) | |
| Number | |
| (1 )Companies are able to receive the Business Link service as often as they need and are counted once per annum | |
| MK intensive assists( 1) | |
| Number | |
| (1) Action plan agreed | |
MK Business healthchecks since October 2008: 384
MK, Oxfordshire and Buckinghamshire businesses helped in 2008/09 through Enterprise Gateway scheme: 163
Business Link provides business support and advice for all individuals and businesses already trading or thinking of starting. Benefits include:
Free Business Health Checks, including maximising cash flow, marketing and business planning, debt management, new market and product development.
Access to finance advice, credit crunch presentations and finance clinics.
Guidance and events on how to survive and thrive in difficult times, including advice on reducing energy consumption and costs.
Access to the SEEDA funded Resource Efficiency programme.
Access to advice and signposting to skills and training opportunities through the 'Train to Gain' service.
Analysis and information on new business opportunities and markets.
In addition the Enterprise Gateway service (delivered through Business Link) offers impartial, professional advice to individuals from under-represented communities facing barriers to enterprise. Business Link also delivers sustainable business advice.
Investor Development Manager (IDM)
The SEEDA IDM is currently working with seven companies who are making redundancies, five companies linking to train to gain and a further 10 companies on a variety of other support needs.
SEEDA funds an Investor Development Manager (IDM), Guy Hawking, who works with strategically important companies in Milton Keynes.
On 1 June 2009 a new support service started in Milton Keynes aimed at providing tailored, specialist and technical business expertise to high growth businesses. This sendee will be delivered by an Innovation and Growth Team directed by a consortium of local partners and managed by the Open University. The aim of this service is to create communities of innovation and growth ultimately generating substantial local and regional economic benefits that improve the global competitiveness of the South East.
Continuous Employment Support Service
In the last nine months 12 companies were supported in Milton Keynes, 761 people were helped.
Companies thinking about making staff redundant or undertaking a redundancy programme can access the free 'Continuing Employment Support Service' run by Jobcentre Plus in partnership with SEEDA. CESS offers a free in-house package of support to all affected workers before they leave their employment, offering tailored advice on future options.
In 2008 / 09 SEEDA referred 34 inquiries to Invest MK.
SEEDA has an inward investment team who aim to attract business from other countries to locate in the South East.
Manufacturing Advisory Service (MAS)
Between 2006 / 09 40 companies were assisted through MAS
MAS South East aims to improve the efficiency and effectiveness of manufacturers in the region to create sustainable improvements. Businesses can access hands-on advice and tailored support from experts to suit the individual requirements of their business to produce real results.
Grants for Business Investment (GBI)
There has been one grant offered
The GBI scheme has recently been extended to be available to all South East eligible SMEs with long-term viability whose investment plans are being held up by current economic conditions. The scheme aims to assist businesses to increase productivity by funding capital investment in equipment and technology. It is for businesses looking to expand, modernise, rationalise, diversify and increase productivity in order to maintain or establish sustainable growth and provide skilled jobs.
Grant for Research and Development
There have been and grants for R&D in MK between 2006-09 (totalling £951,000)
The SEEDA managed grants for R&D are focused on encouraging businesses to carry out projects that they would not necessarily undertake without the grant and lever in to these projects finance from reluctant private investment sources.
Finance South East (FSE) Accelerator Fund
One company in Milton Keynes has been offered the accelerator fund
The accelerator fund is a loan fund which supports small and medium sized companies in the South East with the potential for significant growth (early stage or established companies). It is a response to the needs of entrepreneurial businesses who require the level of growth investment provided by risk capital, but which are reluctant to relinquish an equity stake in the company at an early stage.
One company has been offered the commercialisation fund (worth £29,000)
This new fund of up to £3 million supports businesses with high growth potential to bring new products and services to market.
The fund has not yet been allocated to any MK businesses
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