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HM Treasury 5 9 November 1999 CHANCELLOR OPENS ENTERPRISE TO ALL
Strengthening the UK's enterprise culture and ensuring enterprise
was open to all were central themes of the Pre-Budget Report published
today by the Chancellor Gordon Brown. The Chancellor announced a package of measures to provide enterprise
opportunities in deprived areas and boost enterprise skills in schools.
He said: "This Government wants to open up enterprise to all. We need more
new and successful businesses in our least well-off communities. And
we need to involve as many schools and businesses in developing a
new spirit of enterprise among young people. "Strengthening the UK's enterprise culture is a long term challenge,
requiring partnership between Government, business and educators.
That is why we are currently working with the British Chambers of
Commerce on developing the forthcoming National Campaign for Enterprise."
The Chancellor announced a £30 million programme to
promote better access to business support and finance in deprived
areas. This includes: a development fund to promote innovative enterprise
support in deprived areas, such as incubator units; funding for Community Finance Initiatives (CFIs)
- local intermediaries serving locally based SMEs - by running a challenge
fund to help resource CFIs, and provide loan guarantees to help co-finance
commercial lending to CFIs; and a national network of mentors to business start-ups
through a new Business Volunteer Mentoring Association. These measures address many of the issues raised in the report of
the Treasury led Policy Action Team 3 on enterprise and social exclusion,
published on 2 November. The Government is also considering the case
for a start-up grant to act as an income bridge between benefits and
business, as recommended by PAT 3. The Government will also consider creating scholarships specifically
targeted at entrepreneurs from deprived areas, which would provide
these individuals with the skills they need to turn their ideas into
thriving businesses. The Chancellor also announced a £10 million package of measures
to boost enterprise skills in schools. This includes:
£5 million to improve the quality of the existing national
network of bodies that bring together schools and businesses;
£3 million to enhance teachers' professional development
and improve the quality of work experience for students;
and
£2 million to help double the scale of enterprise programmes
with a proven track record of success, such as those provided
by Understanding Industry and Young Enterprise (including Junior Achievement
in primary schools). The Government will also be supporting the National
Campaign for Enterprise, due to be launched in spring 2000.
The Campaign will help to create a more entrepreneurial culture in
the UK by transforming attitudes, developing skills and encouraging
the formation of new and successful companies. The Campaign will be spearheaded by a network of entrepreneurial
Ambassadors, who will promote and encourage enterprise throughout
the UK. Alan Sugar, who for the last two years has toured schools
and universities speaking about the importance of enterprise to young
people, will add his weight to the Campaign. As will Richard Branson,
who is to launch the new Virgin Business Schools in the new year.
Other Ambassadors will include Reuben Singh, Simon Woodruffe, Prue
Leith and Dr Chris Evans. The Campaign will help to develop the enterprise skills of young
people in the UK, promoting the existing range of enterprise programmes
such as Young Enterprise and Understanding Industry. And the Campaign
will launch an 'Enterprise for All' book in the new year, with a foreword
by the Chancellor - it will showcase successful entrepreneurs and
aim to inspire young people to go into business. NOTES TO EDITORS 1. The two packages of measures will be implemented in 2000-01. 2. The £30 million programme of measures to promote enterprise
amongst disadvantaged groups and in deprived areas, includes £20
million of additional money from the Windfall Tax. 3. The enterprise support development fund will promote innovative
ways of supporting enterprise in deprived areas, such as business
incubator units. Business incubators typically consist of managed
workspace combined with business support services, such as training,
advice and help with finance. 4. Community Finance Initiatives are local finance intermediaries
that act as lenders of last resort - providing finance for businesses
that cannot gain access to mainstream finance. 5. Patricia Hewitt, Minister for Small Firms, DTI, announced on 20
September the setting up of the Business Volunteer Mentoring Association,
a mentoring scheme for people looking to start up their own business.
6. The report of Policy Action Team 3, "Enterprise and Social Exclusion",
was published on 2 November. The report is available on the HM Treasury
website - http://www.hm-treasury.gov.uk. For a hard copy of the report
please contact HM Treasury Public Enquiry Unit (tel: 0171 270 4558).
7. Young Enterprise and Understanding Industry are the two leading
providers of enterprise education in the UK. Together, they provide
enterprise skills training to 90,000 young people. From April 2000,
this package will help increase that number to 200,000. 8. In July, Peter Davies (Managing Director of Business in the Community)
completed a report on school-enterprise activities. His recommendations
were to:
set up an improved infrastructure linked to the Learning and Skills Council;
rejuvenate the teacher placement scheme and review the provisions of work experience;
integrate enterprise education in the National Curriculum and link it to teacher development; and
raise awareness through the National Campaign for Enterprise. 9. This package builds on the revised National Curriculum, announced
by David Blunkett in September, which will include enterprise skills,
financial literacy, consumer education and key skills. The new Curriculum
will be introduced in September 2000. 10. This package implements the rest of the Davies recommendations. It will help ensure that:
more young people - particularly the disadvantaged - are better prepared for the changing world of work;
more teachers have better quality professional development; more schools - particularly those in Education Action Zones and those already covered by the "Excellence in Cities" initiative - have an effective partnership with business; and
more businesses are aware of the benefits of investing in their
local schools and communities. HM TREASURY PRESS OFFICE Press enquiries to: 0171 270 5238 Non-media enquiries to: 0171 270 4558 If you have access to the Internet, you can find this news release and other Treasury information at http://www.hm-treasury.gov.uk
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