Exclusive: green business support scaled back in wake of Defra cuts

The full impact of the £1bn of budget cuts imposed upon Defra earlier this year is finally becoming clear, after a number of green business support agencies confirmed they have cut back on some of the services they offer.

A BusinessGreen.com investigation has confirmed that alongside the axing of Defra's Business Resource Efficiency & Waste programme and Envirowise's Resource Efficiency Clubs, initiatives from the National Industrial Symbiosis Programme (NISP) and Action Sustainability have been quietly scrapped.

According to a spokeswoman for NISP, which aims to help businesses sell or donate unwanted materials to other firms, the programme has scaled back on the number of recruitment workshops it runs in an attempt to focus its remaining resources on its network of firms.

Meanwhile, the green procurement advisory body has stopped its workshops advising small and medium sized businesses on how take comply with customers' sustainable procurement policies.

Defra has confirmed that Envirowise has "recently scaled back its programme of work" as it seeks to cope with a budget cut of 58 per cent compared to last year, while environmental charity Global Action Plan revealed it has scrapped a successful programme promoting green best practices in the home after the government failed to renew funding.

The cuts have prompted anger among some of those affected, who have accused the government of attempting to downplay the impact of the cuts by focusing them primarily on small business support services.

"It's a joke really – when you consider that at the same as it is talking about its commitment to tackling climate change, these cuts have been going on, " complained one source.

A spokesman for the Federation of Small Businesses said that the small business community had been badly served by the changes. "Environmental regulation is complex enough and business does need help and support – it is hugely detrimental when help is taken away and there are still problems," he said, adding that there were still low levels of awareness of green regulations such as the forthcoming Registration Evaluation and Authorisation of Chemicals (REACH) directive.

However, a spokeswoman for Defra insisted the department had enhanced the level of green business support it offers.

"Defra is improving access to business advice services through the Government wide Business Support Simplification Programme," she said. "Streamlining the wide range of support available will make it easier for business to access Defra's services."

She added that a wide range of business advice and support can be accessed through the Government's online Business Link service.

However, the investigation also revealed fears that further cuts to services could be imposed as a consequence of Defra's imminent Landscape Review into business support services.

The review, which is due to be published before the end of the year, is expected to recommend a consolidation of the number of green business support bodies operated by the government and some observers are concerned that the proposed changes are being driven in part by a desire to reduce costs.

"I'd say that the budget cuts from earlier in the year have had a significant impact [on the Landscape Review]," said one insider. "They have been directed to come in under budget and this [consolidation of services] is their way of doing it."