DTI denies twisting small business survey, reports FT

28 10 2005 United Kingdom

Ministers were forced on to the defensive, according to the Financial Times, after their claim that an official survey of small businesses showed ‘increased satisfaction with government’ was contradicted by the published findings.

In a front-page article, Jean Eaglesham UK Business Editor of the Financial Times reports that a Department of Trade and Industry press release yesterday hailed its survey of more than 7,000 businesses as proof of the success of government policies.

Alun Michael, minister of state for small businesses at the DTI, had said that he was "delighted the survey shows that more small businesses believe the government listens and takes into account [their] concerns."

In fact the survey found that, as in last year’s survey, 38 per cent believed it took no account at all of their problems. It concluded that respondents ‘did not consider that the government took a lot of account of the concerns of small businesses’.

According to the published survey, only a minority - 11 per cent - believed the government took much account of the problems facing businesses in the UK.

43 per cent of owners and managers of businesses in the survey expressed strong dissatisfaction, declaring that the government took ‘only a little’ account of their problems. The DTI claimed that the 43 per cent were satisfied with the government's response to business concerns.

Last night, according to the FT’s report, the DTI denied it was guilty of misrepresenting the survey’s findings. A spokesperson said, "The minister did stress there was still room for improvement."

Contrary to the report’s conclusion, the DTI also claimed that the red tape problem had improved. The published conclusion was the exact opposite: ‘more small businesses this year than last see regulations as an obstacle to their growth’.

The spokesperson told the FT that the discrepancy was due to an error in the survey report.

topenterprise update

GNN, the government news agency, has withdrawn the press release reported in the Financial Times.

The following notice appears on the Department of Trade and Industry website:

THERE WERE ERRORS IN THE DTI PRESS NOTICE PUBLICISING THE SMALL BUSINESS SURVEY, P/2005/337, ISSUED ON 27.10.05. THE PRESS NOTICE HAS BEEN WITHDRAWN AND A CORRECTED VERSION WILL BE PUBLISHED AS SOON AS POSSIBLE.

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