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Press Release

Small Business Service changes long overdue says FSB

Thursday 26 October 2006

The Federation of Small Businesses (FSB) today gave a mixed reaction to the changes announced by the Department of Trade and Industry to the Small Business Service.

The FSB welcomed proposals to streamline the service and give it more powers to make the case on behalf of small businesses within Government. The FSB’s only concern is that this is a cut in real terms that will see funding for specific small business assistance being reduced.

Clive Davenport, FSB Trade and Industry Chairman, said:

“We welcome the re-focusing of the SBS and the overall trend of today’s announcement.

“Small businesses need an SBS that has more clout in central government and is more responsive to the needs of small firms. Given that small businesses employ over half of the private sector workforce and generate 58% of UK GDP the SBS needs to fight their corner in Government policy making. 12 million jobs depend on them getting it right and being effective at the highest levels of Government.

“However, we do need to ask the Government where the money saved from these changes will go. We are concerned that the savings will simply be swallowed up into the Government pot. Small firms will still be paying the same amount in taxes but may see a reduction in services.”



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Federation of Small Businesses

Federation of Small Businesses

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