The Department for Business, Enterprise and Regulatory Reform (BERR) says it will to drive reform through competitive markets that create value for businesses, consumers and employees.
The Department is headed by John Hutton, the first Secretary of State for Business, Enterprise and Regulatory Reform, who was previously Secretary of State for Work and Pensions.
The BERR hopes to bring together functions from the former Department of Trade and Industry (DTI), including responsibilities for productivity, business relations, energy, competition and consumers.
The Government says the department will provide support to the new Business Council for Britain. Made up of senior business leaders, the Council will work to promote the long-term health of the UK economy.
Critics have labelled the new body a ‘reconstructed DTI’. BBC reporter Robert Peston said:
“Years ago Gordon Brown made it clear to me that he would bury the Department of Trade and Industry, as and when he had the power to make or break government departments. But now that he has that power, he has decided to endeavour to redeem it as a proper ministry for business.”
However, it has already won tentative support from the Federation of Small Businesses.
John Walker, National Policy Chairman at the FSB said,
“If the new department does what it says on the tin in terms of regulation, then small businesses and the UK economy as a whole will benefit greatly.”
Stephen Timms has been appointed as the Small Business Minister in the new department.
The MP East Ham became known as the e-minister when he took control of the Government’s e-Commerce brief at the DTI. In May of last year, he was appointed to the Cabinet as Chief Secretary to the Treasury.
“We hope that Stephen Timms’ experience at the Treasury will have given him some understanding of the dismay felt by small companies following the unexpected and unwelcome tax rise imposed upon them in the last Budget,” the FSB said.
“We look forward to working with him to improve the regulatory environment for small businesses and highlight their concerns across government.”
The FSB said that the combination of a new department focussing more on regulatory reform and a new minister with experience at the Treasury provides an opportunity for small business issues to be given more prominence.
