Department for Business

In my maiden post I said that my first task would be to get the DTI ruthlessly focused on its key challenges. With respect to the DTI's core objectives, British business is the key stakeholder, so we should use their feedback on the service provided as a key benchmark for performance and a driver for change. The London Chamber Of Commerce in partnership with pollsters CommunicateResearch recently surveyed London Business Leaders and I have been kindly allowed to reproduce their summary article in full below.

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Capital Business Leaders Call For DTI To Be Scrapped And Replaced With New ‘Department for Business’

Nine out of ten company directors in the capital support the creation of a dedicated Department for Business, headed by a Cabinet Minister, to replace the DTI, according to a new survey from the London Chamber of Commerce and Industry (LCCI), published ahead of a major House of Commons debate on the DTI's future.

There was also serious criticism of the department's performance in the London Business Leaders' Panel survey, conducted by the LCCI, in partnership with leading pollsters CommunicateResearch.

Figures show that some 56 per cent of London business leaders rated the DTI as 'poor' or 'very poor' at its stated objective of 'building an enterprise society in which small firms thrive'.
In addition, less than a quarter of directors rated as 'excellent' or good the DTI's performance over the past decade at 'creating the conditions for business success'. More bad news for ministers saw less than a third of directors giving the department a positive rating for its work preparing UK businesses for globalisation, while less than a fifth gave the DTI a positive rating for its performance on UK productivity growth.

More than two-fifths of directors said the DTI was 'not fit for purpose' in its current guise.
Government support for business is considered crucial however. Three quarters of company directors would back the idea of a new-look 'Department for Business', possibly even assuming some functions from the Treasury, to give targeted support to firms, promote UK trade overseas and championing the concept of enterprise.

Feedback also shows that nine out of 10 company directors believe a reformed 'Department for Business' should be headed by a Chief Executive recruited from the private sector rather than a permanent secretary from the civil service, and have headquarters in either the City or Canary Wharf.

Colin Stanbridge, Chief Executive of the London Chamber of Commerce, said: "Business wants support from the top, but the DTI, in its current form, is not even delivering on the ground, particularly for small firms."

"What we want to see is a department for business, driven by business, and focused on supporting business, but with the clout that only comes from a seat at the Cabinet table."

Full report here.
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I advocate the idea of a department for business. Indeed Alan Duncan and Peter Luff on the Conservative benches have referred to the above survey in recent Parliamentary debates. The existing failures are manifest, so why shouldn't we achieve a cross-party consensus on the way forward.

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