Lack of transparency and accountability of local authority business support scheme a cause for concern

Lack of transparency and accountability of local authority business support scheme a cause for concern

A Holyrood committee has expressed concern about the lack of transparency, accountability and alignment of Business Gateway, a local-authority provision that aims to help businesses develop and grow.

With 10 years having passed since the Scottish government transferred Business Gateway to Scotland’s local authorities, the Economy, Energy and Fair Work Committee launched its inquiry into the effectiveness and efficiency of business support available to small and medium sized businesses.

The committee was particularly concerned about the lack of accountability for the remit and performance of Business Gateway, and its position within Scotland’s wider business support landscape.

It noted that local authorities are responsible for setting their own Business Gateway targets and found it “unacceptable” that there was limited transparency around Business Gateway budgets and performance.

Gordon Lindhurst, convener of the committee, said: “There is a lack of alignment, transparency and accountability in Business Gateway, and we found it unacceptable that local authorities do not consistently record and publish targets or financial information.

“It was essential for the committee to hear directly from businesses about their experiences with business support. There is much to be commended, but opportunities have been missed to align local and national economic priorities and to make it easier for businesses to be able to access services.”

As part of this inquiry, the committee looked at business support elsewhere and was impressed by the services in Ireland, which provide a mix of tailored local delivery and national strategic direction. The committee has now asked the Scottish government to review the Irish model and consider whether it could be applied to Scotland to overcome the current accountability and alignment challenges.

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