The government has acknowledged that it must work harder to ensure that businesses’ views are represented in Whitehall.

The PM has given the Department for Business, Enterprise and Regulatory Reform (DBERR) a clear remit to communicate the needs of employers in government, and the department has pledged to act as ‘an advocate for businesses of all sizes and types and across all regions of the country’ in an effort to restore confidence among businesses that their concerns are being heard.

In his ‘Commitment to Business’ pledge, secretary of state for the DBERR John Hutton recognised that there was ‘clear room for improvement’ if the business voice was to be heard going forward, and that more collaboration between government departments was essential.   

The 52-page strategy document released yesterday signalled a ‘fundamental shift in responsibility and expectation’ to ensure that businesses’ views on issues such as innovation, taxation, skills, migration, planning and transport were expressed in Whitehall.    

The government also outlined measures to ensure that employers were consulted on policy discussions, including a new dedicated unit to liaise with businesses.    

Hutton commented: “I am determined that we will be an effective voice for business in government. If an issue affects UK competitiveness, then we need to be part of finding the solution.”   

However, the publication has been released at the height of backlash surrounding chancellor Alistair Darling’s announcement of changes concerning capital gains tax, which many have labelled as a disincentive to enterprise, causing critics to question how much sway the BERR really has against the Treasury.    

In particular, the government has repeatedly come under fire for failing to listen to the needs of smaller firms, following moves such as the recent increase in the corporate tax rate they pay and by failing to appoint any representatives from small businesses on the PM's newly formed council of business advisers.

Last week, Matt Hardman, campaigns manager for the Forum of Private Business (FPB) suggested that the government has much ground to cover in reassuring small firms that their voice will really be heard.

He said: "[Small firms] clearly feel that their needs and opinions are being ignored by the Government in favour of those of big business."

© Crimson Business Ltd. 2007