Help for firms is “poorly communicated and confusing”, MPs have warned.
This is not helped by the fact the business department select committee inquiry found more than 600 different taxpayer-funded support initiatives.
Ministers are also criticised for a hands-off approach to local enterprise partnerships (Leps), the bodies meant to attract investment and jobs, despite their “inconsistency of performance”.
And the alarm was raised over the continuing struggle many firms face to obtain finance, nearly seven years on from the banking crisis. It urged the Government to investigate the lending problems facing small and medium-sized enterprises (SMEs), using the new British Business Bank.
It also calls for the Green Investment Bank, which backs firms helping with the switch to a low-carbon economy, to be given the “borrowing powers” that it badly needs.
MPs have now called for the National Audit Office to investigate.
Adrian Bailey, chairman of the committee, said: “While the government’s approach is largely positive, we found businesses are not always clear about the support on offer, finding it poorly communicated, confusing and not focused enough on business need.”
Matthew Hancock, the business minister, attacked the committee’s conclusions as “out of date already”. “In December we brought (hundreds of schemes) together in our Great Business website. Now, all schemes will be either under UKTI for exports, the British Business Bank for finance, and the Business Growth Service for advice.”
The Federation of Small Businesses agreed that businesses found the system “vague and complex” but welcomed progress in providing a “more coherent offer”.
The report also casts doubt over an ambition for UK exports to reach £1 trillion by 2020, saying: “We are not convinced that this is a target the Government expects to meet.”
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