Exclusive: Defra set to axe green business agencies in delivery shake up

The government is considering a huge shake up of its various green advisory programmes that would see a number of bodies axed to make way for three or four "super agencies".

BusinessGreen.com has learned that Defra's upcoming Landscape Review of its business advisory bodies will outline plans to consolidate many of its agencies and programmes into The Carbon Trust, the Energy Saving Trust and the Waste and Resources Action Programme (WRAP).

One source close to the process claimed that "virtually every other green business advisory body will be axed or consumed into the new expanded departments".

Business advisory agency Envirowise is expected to be integrated into other departments, while the National Industrial Symbiosis Programme (NISP), which provides a network for firms to share or resell unwanted resources, could also be folded into WRAP. Smaller regional programmes and agencies could also be affected.

The Landscape Review, which was undertaken as part of the government's business support simplification programme, is expected to be published in November and will be followed by a public consultation into its recommendations.

There are doubts over the extent to which the recommendations will be adopted in the wake of last week's cabinet reshuffle, which saw Defra's responsibilities for climate change handed over to a new Department for Energy and Climate Change.

However, one source claimed that a reduction in the number of agencies the government operates is the "preferred option" in Whitehall and as such, several bodies could be scrapped from as early as next April.

A spokeswoman for Defra said that the Landscape Review was on-going, but declined to comment on its contents.

Experts said that while the creation of a small number of "super agencies" could help cut costs and remove duplication from across some of the government's environmental programmes, many businesses, and in particular smaller firms, could miss out on important services as a result.

"The government is dressing it up as a move for efficiency, but they are taking support away from the sector that needs it most – small and medium businesses," said one insider. "The Energy Saving Trust has a domestic remit and WRAP and the Carbon Trust tend to work with larger firms. But big businesses are trying to cut emissions anyway and are willing to pay for consultancies to help them – it is smaller firms that need support."

Another source claimed that many businesses could see green advisory services affected as a result of any changes. "There are a lot of government agencies in the environmental business support area, and there could be a simpler way of doing things," she admitted. "But there is a real danger that companies work with those agencies that are folded together could lose out."

A spokesman for The Federation of Small Businesses said the trade group was concerned that support for smaller firms could be scaled back as a result of the changes.

"There seems to be a one-size-fits-all approach across government support programmes and SMBs usually miss out," he said. "There is not much dedicated support there for SMBs that want to go green, so folding what there is into larger organisations would be a cause for concern."

Craig Bennett, co-director of the Corporate Leaders Group on Climate Change, agreed there were legitimate causes for concern over the government's proposals. But he added that a more streamlined business support strategy could make it easier for firms to access green advice and funding.

"One of the issues for smaller business is often knowing which government agency to approach," he said. "They could benefit from a simplification of the agencies that leaves them with one entry point for gaining advice."