{"id":329,"date":"2015-05-21T16:36:08","date_gmt":"2015-05-21T16:36:08","guid":{"rendered":"http:\/\/bfpa.wpengine.com\/?page_id=329"},"modified":"2017-02-07T10:44:33","modified_gmt":"2017-02-07T10:44:33","slug":"engaging-with-government","status":"publish","type":"page","link":"https:\/\/bfpa.co.uk\/engaging-with-government\/","title":{"rendered":"Engaging with Government"},"content":{"rendered":"

Engaging with Government<\/h2>\n

Understanding the new Government Departments designed to support Business<\/h3>\n

BFPA CEO, Chris Buxton seeks to shed some light on the structure of at-least part of the new Government Structure that seeks to help UK Business forge<\/em>
\na strong future in the post-Brexit economy.<\/em><\/p>\n

In what is still only a matter of weeks since the seismic event that was not just a Brexit vote but a complete restructuring of the UK Government, it would be a brave person that could claim to understand all of the structural changes that have taken place or indeed, those that are bound to follow when the inevitable after-shocks of this particular earthquake bring further change and confusion!
\nHowever, as the dust settles and trade associations, including the BFPA, seek to re-engage with the \u2018walking wounded\u2019 currently staggering around Whitehall a clearer picture is slowly emerging and I would submit; even speaking as a strong \u2018remainer\u2019, there is much for business to be pleased about.<\/p>\n

The most obvious change has been the evolution of our much loved Department for Business Innovation and Skills (BIS) into the department for Business, Energy and Industrial Strategy or BEIS for short;\u00a0 (pronounced phonetically; \u2018baze\u2019).\u00a0 BEIS is in fact a merger of BIS and the Department for Energy and Climate Change (DECC) and now consolidates responsibilities for business, industrial strategy, science, innovation, energy, and climate change under one authority.<\/p>\n

To this extent they will be responsible for:
\n\u2022\u00a0\u00a0 \u00a0developing and delivering a comprehensive industrial strategy and leading the government\u2019s relationship with business
\n\u2022\u00a0\u00a0 \u00a0ensuring that the country has secure energy supplies that are reliable, affordable and clean
\n\u2022\u00a0\u00a0 \u00a0ensuring the UK remains at the leading edge of science, research and innovation
\n\u2022\u00a0\u00a0 \u00a0tackling climate change<\/p>\n

As businesses, the first of the above bullets will be of prime interest but where, you may well ask, have \u2018Skills\u2019 gone?\u00a0 The answer is a logical one \u2013 the Department for Education.\u00a0 However, for those of us who have been around Whitehall long enough this will raise alarm bells.\u00a0 The importance of skills as an integral part of any industrial strategy is paramount and Government departments are renowned for being \u2018stove-piped.\u2019\u00a0 Like fiefdoms, they are reluctant to cross communicate let alone co-operate.
\nAgain Business can take comfort. Recognising this failing, the May Cabinet has established a new Ministerial Commission comprising of eleven Cabinet Ministers and Chaired by the PM herself.\u00a0 One of their primary roles will be to ensure that the required cross departmental co-operation actually takes place and they have introduced a stakeholder engagement plan which includes a range of key interested parties such as Unions and Local Councils but significantly, the UK Trade Associations.
\nBFPA is currently the Chair of the UK Trade Association Forum and we have been invited by the new team to have discussions around key issues for our membership.<\/p>\n

The key staff within BEIS are:-
\n\u2022\u00a0\u00a0 \u00a0Rt Hon Greg Clark MP, Secretary of State for Business, Energy and Industrial Strategy
\n\u2022\u00a0\u00a0 \u00a0Nick Hurd MP, Minister of State for Climate Change and Industry
\n\u2022\u00a0\u00a0 \u00a0Jo Johnson MP, Minister of State for Universities, Science, Research and Innovation (joint minister with\u00a0Department for Education)
\n\u2022\u00a0\u00a0 \u00a0Baroness Neville-Rolfe, Minister of State for Energy and Intellectual Property
\n\u2022\u00a0\u00a0 \u00a0Margot James MP, Minister for Small Business, Consumers, and Corporate Responsibility
\n\u2022\u00a0\u00a0 \u00a0Jesse Norman MP, Minister for Industry and Energy<\/p>\n

These new ministerial portfolios; (so claims the new Cabinet), \u201creflect the key priorities for the department to develop a comprehensive industrial strategy; continuing to ensure the UK remains at the cutting-edge of science, research and innovation; tackling climate change; and ensuring affordable, clean and secure energy supply for the UK.\u201d
\n(Gregg Clark\u2019s September 27th address to the Institute of Directors on the importance of Industrial Strategy can be read verbatim at www.gov.uk\/government\/speeches\/the-importance-of-industrial-strategy)
\nSo; this covers Business interests and Industrial strategy.\u00a0 What about Trade?\u00a0 This activity is going to be the focus of a new department called, not surprisingly; the Department for International Trade or DIT \u2013 not, I am told by its new Director, Rosa Wilkinson, to be pronounced \u2018ditt\u2019 but to be spelt out in full; D. I. T.
\nThe Department for International Trade has overall responsibility for developing, coordinating and delivering a new trade and investment policy for the UK, including preparing for and then negotiating Free Trade Agreements and market access deals with non-EU countries. Working side by side with the Department for Exiting the EU (see below), the Department for International Trade will help support the negotiation of the UK\u2019s new relationship with Europe.<\/p>\n

Working across the whole of government, industry and the UK\u2019s extensive overseas network, the Department supports UK businesses in scaling up and taking advantage of the global appetite for British goods and services, as well as to demonstrate that there has never been a better time for international companies to partner with UK suppliers. It is a specialist body, with significant new trade negotiating capacity, and Government claims that it is revolutionising the way UK businesses access international markets.<\/p>\n

There are three groups in the Department for International Trade:
\n1)\u00a0\u00a0 \u00a0The Trade Policy Group, led by John Alty.
\n2)\u00a0\u00a0 \u00a0International Exports and Investment (ITI, formerly UKTI), led by Catherine Raines.
\n3)\u00a0\u00a0 \u00a0UK Export Finance, led by Louis Taylor.<\/p>\n

These activities remain essentially as they were under the old regime but under new guidance and authority.<\/p>\n

The purpose of the Trade Policy Group is to promote open and fair international markets for the UK.
\nThis means:
\n–\u00a0\u00a0 \u00a0Identifying our detailed policy priorities and flexibilities.
\n–\u00a0\u00a0 \u00a0Securing ambitious free trade agreements.
\n–\u00a0\u00a0 \u00a0Ensuring effective implementation of trade and investment rules.
\n–\u00a0\u00a0 \u00a0Supporting the interests of developing countries.
\n–\u00a0\u00a0 \u00a0Delivering efficient and effective import\/export licensing services.
\n–\u00a0\u00a0 \u00a0Engaging with stakeholders in government, business, civil society & internationally to explain, advocate and deliver Government goals.<\/p>\n

The purpose of DIT\u2019s International Exports and Investment Directorate is; (as it was as UKTI),\u00a0 to drive growth in the value of UK exports and attract the highest value foreign direct investment into the UK.
\nThis means:
\n–\u00a0\u00a0 \u00a0Working overseas to identify and deliver high-value export campaigns in the markets and sectors of highest value.
\n–\u00a0\u00a0 \u00a0Working with commercial and public partners in the UK to prepare businesses to export, or to work with businesses to grow their exports.
\n–\u00a0\u00a0 \u00a0Working with local partners and sector experts to deliver high-value foreign direct investment and capital investment into the businesses and areas where it will most benefit the UK economy.
\n–\u00a0\u00a0 \u00a0Delivering scalable export and foreign direct investment support solutions to ensure that mass market export and investment support are \u2018digital by default\u2019.<\/p>\n

The purpose of UK Export Finance (UKEF) – the UK\u2019s Export Credit Agency \u2013 remains essentially unchanged and is to provide assistance and support to exporters and investors where the private sector cannot. This is principally in the form of insurance to exporters and guarantees to banks against non-payment of contract sums or loans. UKEF also provides loans directly to foreign buyers for the purpose of buying UK goods and services. As it always did, UKEF works closely with banks and insurance brokers as well as with exporters and overseas buyers.<\/p>\n

So; we now have Business, Industrial strategy, Trade and Exports covered.\u00a0 We then come to the all- important role of managing our exit from the EU.
\nThis, it seems, will fall to the new Department for Exiting the European Union.\u00a0 (No-one can say that it doesn\u2019t \u2018do what it says on the tin!\u2019 )\u00a0 This is such a new concept that policy is still emerging but the Government states that it is \u2018responsible for overseeing negotiations to leave the EU and establishing the future relationship between the UK and EU.\u2019\u00a0 This is perhaps the most challenging and hazardous Government portfolio.<\/p>\n

Their remit includes:
\n–\u00a0\u00a0 \u00a0the policy work to support the UK\u2019s negotiations to leave the European Union and to establish the future relationship between the EU and the UK
\n–\u00a0\u00a0 \u00a0working very closely with the UK\u2019s devolved administrations, Parliament, and a wide range of other interested parties on what the approach to those negotiations should be conducting the negotiations in support of the Prime Minister including supporting bilateral discussions on EU exit with other European countries
\n–\u00a0\u00a0 \u00a0leading and co-ordinating cross-government work to seize the opportunities and ensure a smooth process of exit on the best possible terms
\nEarly discussions reveal that their priorities will be:-
\n–\u00a0\u00a0 \u00a0ensuring the government is able to take initial decisions on the UK\u2019s withdrawal on the basis of the best possible advice
\n–\u00a0\u00a0 \u00a0strengthening capability across government in preparation for the work ahead
\n–\u00a0\u00a0 \u00a0reaching out to stakeholders in order to understand and capture their views
\n–\u00a0\u00a0 \u00a0establishing the department and setting it up to succeed<\/p>\n

One would hope that the latter point was never in question!
\nThe key senior management team in this new venture includes:
\n>Oliver Robbins CB, Permanent Secretary
\n>Sarah Healey, Director General
\n>Creon Butler, Director of Analysis
\n>Chris Jones, Director of Justice, Security and Migration
\n>Joanna Key, Director of Strategy and Planning
\n>Antony Phillipson, Director of Trade and Partnerships
\n>Thomas Shinner, Director of Cross-Government Policy Coordination
\n>Catherine Webb, Director of Market Access and Budget<\/p>\n

For those of us with a need to engage with this team the following organogram has been published:-<\/p>\n

\"screen-shot-2016-10-06-at-10-00-55\"

So there we have it.\u00a0 A new set of politicians and civil servants with whom to engage and a future which we would all have to admit, may be precarious but is at the very least \u2013 exciting!
\nAs Rupert Hodges (secretary to our Engineering & Machinery Alliance) put it; \u201cUK Manufacturing \u2013 What\u2019s not to like?\u201d\u00a0 His question may have been rhetorical but it is born of a widely held and arguably, justifiable optimism amongst those of us who engage with Whitehall.
\nHe went on;
\n\u201cYou have to admit it\u2019s an unexpected and impressive list.
\n\u2022\u00a0\u00a0 \u00a0A cabinet committee chaired by the Prime Minister with the remit to drive the economy and an industrial strategy for the nation
\n\u2022\u00a0\u00a0 \u00a0A network of seven world leading open innovation centres where industry and academics can collaborate using highly advanced machinery to speed commercialisation of new UK processes and products and help ensure they come to market here rather that in another country [part of the Catapult network]\n\u2022\u00a0\u00a0 \u00a0A tax structure that encourages both research and development and even pays up on past activity that\u2019s not been claimed before
\n\u2022\u00a0\u00a0 \u00a0A permanent annual investment allowance of \u00a3250,000 that supports industrial investment
\n\u2022\u00a0\u00a0 \u00a0A new government department that\u2019s identified export potential for UK companies in certain overseas markets for sectors such as pumps, taps and valves and fluid power [ITI]\n\u2022\u00a0\u00a0 \u00a0Six national initiatives helping firms explore new technologies such as flexible manufacturing, mass customisation, additive layer manufacturing\/3D printing, the internet of things and through life engineering support services for new business opportunities.\u201d
\nI have to agree with him.\u00a0 The building blocks for a strong UK economy; which means a strong industrial base whether in supply or manufacture, are, in many ways for the first time, now in place.\u00a0 Only time will tell if the full potential of all of this new \u2018machinery and resource\u2019 is realised.\u00a0 Certainly the BFPA will continue to work hard on behalf of its members in contributing to the efforts associated with doing so.<\/p>\n

An opportunity to engage or a Government scheme to pass its responsibilities onto the private sector?<\/h3>\n

BFPA CEO Chris Buxton reviews the function and role played by the Local Enterprise Partnerships in helping industry at a more local level and the funding opportunities that they present.
\nThe tensions between central Government policy, (driven in the main, by civil servants from Whitehall), and the local impact that such policy has upon what are often rural communities in remote and in some cases, depressed areas of the UK, are well recognised.
\nThe much claimed disconnect between the two communities has been the \u2018stuff of political elections\u2019 for decades.
\nIndeed, many argue that the result of the recent EU referendum could be attributed to a protest vote from those that felt that Whitehall had \u2018lost touch\u2019 with the wider population beyond the confines of London, the South East and other predictably affluent areas.\u00a0 This debate is not the subject of this paper but the fact remains that there has always been a ground swell of opinion that decentralisation of Government and a network of local authority, in whatever form it takes, is generally well received by most communities.
\nThe level of autonomy enjoyed by such authorities and the form that it takes, depends very much upon the Government of the day and perhaps most importantly, the health of the economy.<\/p>\n

Inevitably, it is the latter that tends to determine the funds that are made available for more local initiatives.\u00a0 In recent years, dwindling government funds and the ever increasing burden being placed upon them have led to a plethora of what might be termed \u2018creative\u2019 contracting means such as the Private Finance Initiative (PFI), later to evolve into the Private Public Partnership or PPP.<\/p>\n

Upon closer examination of these models, the more cynical eye would say that they were an inevitable attempt by an under-resourced Government to pass the burden of funding and even the risk associated with the commercial success or failure of a local project onto the shoulders of the increasingly burdened private sector.\u00a0 The Government case for doing so was of-course, one of self-determination and potential profit for the companies with whom they engaged.<\/p>\n

\"screen-shot-2016-10-06-at-10-09-43\"

Similar activities were carried out in Wales by the Welsh Government Department of Economy and Transport, in Northern Ireland by the Department of Enterprise, Trade and Investment and in Scotland by Scottish Enterprise and Highlands and Islands Enterprise.\u00a0 They were funded from HM Treasury via six different central government departments of the day:
\n1.\u00a0\u00a0 \u00a0Department for Business, Innovation and Skills
\n2.\u00a0\u00a0 \u00a0Department for Communities and Local Government
\n3.\u00a0\u00a0 \u00a0Department for Energy and Climate Change
\n4.\u00a0\u00a0 \u00a0Department for Environment, Food and Rural Affairs
\n5.\u00a0\u00a0 \u00a0Department for Culture, Media and Sport
\n6.\u00a0\u00a0 \u00a0UK Trade and Investment<\/p>\n

Unfortunately, the performance of these Agencies was very variable.\u00a0 Some; most notably Yorkshire and The Humber, branded \u2018Yorkshire First\u2019, were very successful and well managed.\u00a0 Others were far from successful and led to much controversy around what was perceived to be a waste of public money.\u00a0 Consequently, in June 2010 the UK government announced the abolition of the RDAs (which actually took place on 31 March 2012), with a view to reducing the government deficit.<\/p>\n

On 29 June 2010 a letter was sent from the Department for Communities and Local Government and the Department for Business, Innovation and Skills, also to local authority and business leaders, inviting proposals to replace regional development agencies in their areas by 6 September 2010. On 7 September 2010, details were released of 56 proposals for local enterprise partnerships (LEP\u2019s), that had been received. On 6 October 2010, during the Conservative Party Conference, it was revealed that 22 had been given the provisional ‘green light’ to proceed and others might later be accepted with amendments. 24 bids were announced as successful on 28 October 2010.<\/p>\n

Consequently, Government would claim that the RDA\u2019s were replaced by a new vehicle known as the Local Enterprise Partnerships or \u2018LEP\u2019s\u2019. In practice, they were not so much a replacement as a new concept as they differed from RDA\u2019s in one crucial way \u2013 they did not receive any funding from central government and local councils to whom responsibility for their success fell, did not receive an equivalent injection of income from central funds, having been called upon to make savings and support similar initiatives.<\/p>\n

To this extent, the pioneering LEPs were set up on a volunteer basis without any public funding and struggled to make progress. A much discussed report by Michael Heseltine in October 2012, \u201cNo Stone Unturned\u201d, was largely accepted by Government, and proposed delegating funds from central government to LEPs, including:
\n–\u00a0\u00a0 \u00a0a share of a \u00a31,400m Local Growth Fund to generate growth, allocated through competitive bidding;
\n–\u00a0\u00a0 \u00a0getting LEPs to draw up plans for local growth as the basis for negotiation on the money in the Fund
\n–\u00a0\u00a0 \u00a0realigning the management of the EU Structural and Investment Funds in England to follow the plans made by LEPs.
\nThus, the Local Enterprise Partnerships as they exist today, were born.\u00a0 They are described as; \u201cvoluntary partnerships between\u00a0local authorities\u00a0and businesses set up in 2011 by the\u00a0Department for Business, Innovation and Skills\u00a0to help determine local economic priorities and lead economic growth and job creation within the local area.\u201d\u00a0\u00a0 To this extent, they provide opportunities for local funding initiatives by companies looking to develop their businesses whether it be through increased recruitment, filling skills gaps or developing new products and services.
\nThe first LEP\u2019s to become established were, Greater Birmingham and Solihull,\u00a0Greater Manchester,\u00a0Leeds City Region, North Eastern,\u00a0Sheffield City Region, and West of England. They were included in the first wave of what were called ‘city deals.’
\nFour years later, there are now 39 active LEP\u2019s in operation.<\/p>\n

Engaging with the LEP network (Growth Hubs)<\/h3>\n

Since its inception in 2012, the LEP network has evolved extremely fast.\u00a0 Service delivery is now achieved through what are termed Growth Hubs.\u00a0 Each LEP has an associated Growth Hub thus there is a Hub-network of 39. Growth hubs are local public\/private sector partnerships led by the Local Enterprise Partnerships (LEPs). They join up national and local business support so it is easy for businesses to find the help they need.\u00a0 They are, if you like, the first port of call for businesses.<\/p>\n

The current distribution is mapped out below and reflects the distribution of the LEP\u2019s<\/p>\n

\"screen-shot-2016-10-06-at-10-11-39\"

 <\/p><\/blockquote>\n

Each of the Growth Hubs and their associated LEP has a strategic plan for their region all of which can be found along with a great deal of helpful information regarding how to approach them, on the LEP Network website.(www.lepnetwork.net)\u00a0 The Growth Hub represents the doorway for companies seeking to engage with their LEP.\u00a0 All contact details for each Growth Hub are also available on the LEP Network website.
\nEnterprise Zones:-
\nAny company exploring the LEP network should also be aware of the Governments portfolio of Economic Zones.
\nEnterprise Zones are designated areas across England that provide tax breaks and Government support. \u00a0To this extent they are very attractive places to do business especially for both new and expanding firms.
\nAlso established in 2012, Enterprise Zones are claimed to be at the heart of the Government\u2019s long-term economic plan, helping businesses to grow. Since starting in April 2012 they have laid down the foundations for success for 635 businesses, attracting over \u00a32.4 billion pounds of private sector investment, attracting nearly 24,000 jobs. The success of the programme led to more Enterprise Zones being\u00a0announced\u00a0in the Autumn Statement in 2015 and in the March 2016 Budget.\u00a0Up to 48 Enterprise Zones are currently planned to be in place by the beginning of April 2017.<\/p>\n

EZ Benefits for Businesses<\/h3>\n

Businesses that locate on an Enterprise Zone can access a number of benefits:
\n\u2022\u00a0\u00a0 \u00a0Up to 100% business rate discount worth up to \u00a3275,000 per business over a 5-year period
\n\u2022\u00a0\u00a0 \u00a0Simplified local authority planning, for example, through Local Development Orders that grant automatic planning permission for certain development (such as new industrial buildings or changing how existing buildings are used) within specified areas
\n\u2022\u00a0\u00a0 \u00a0Government support to ensure that superfast broadband is rolled out throughout the zone, and, if necessary, public funding
\n\u2022\u00a0\u00a0 \u00a0100% enhanced capital allowances (tax relief) to businesses making large investments in plant and machinery on 8 Zones in Assisted Areas
\nBusinesses that locate on sites from the first round of Enterprise Zones must have done so before March 2018 to be able to access business rate reliefs. For new Zones starting in April 2016, they will need to have located onto the Zone before March 2021 to qualify.
\nOn EZ sites where enhanced capital allowances are available (assisted areas), businesses now have up to eight years from the launch of the EZ to make their investment. Businesses thinking about locating to an Enterprise Zone can also find more information about investment opportunities at the\u00a0Local Investment Showcase website.
\nWhat benefits do Enterprise Zones offer local communities?
\nEnterprise Zones are establishing themselves as the driving force of local economies as they unlock key development sites, consolidate infrastructure, attract business and create jobs.<\/p>\n

All business rates growth generated by the Enterprise Zone is kept by the relevant local enterprise partnership and local authorities in the areas for 25 years to reinvest in local economic growth. For the Local Enterprise Partnerships with Enterprise Zones, this represents the government\u2019s most significant commitment to long-term economic growth.
\nIn addition, the Government is committed to working actively with Enterprise Zones to help to unblock any barriers to delivery, such as Department for Transport support on transport infrastructure, Defra support on addressing environmental issues and UKTI advice on marketing Zones to international investors.
\nIn April 2016 the Government announced that the Enterprise Zone network was going to be augmented with two further zones meaning that there will be 48 EZ\u2019s by close of play in 2017.
\nThe breakdown of the EZ network is provided in Appendix Two of this document.<\/p>\n

Latest Developments:-<\/h3>\n

On the 11th of August, the new Business and Energy Secretary Greg Clark underlined what he described as the vital role of local growth and the importance of \u2018place\u2019 in developing and delivering the government\u2019s comprehensive industrial strategy during a visit to Belfast.
\nFor the first time, all ministers in the Department for Business, Energy and Industrial Strategy (formally BIS), will act as local growth champions across the United Kingdom and will be tasked with building relationships with a number of Local Enterprise Partnerships (LEPs).
\nMinisters will also engage with businesses and local leaders in the devolved administrations in Wales, Scotland and Northern Ireland, and will act as a first point of contact for respective\u00a0LEPs\u00a0in England within the Department for Business, Energy and Industrial Strategy.
\nThis would suggest not only increased Government commitment to the local growth initiatives and the LEP Network but also that MP\u2019s may become an alternative \u2018doorway\u2019 into engaging more effectively with the LEP or more specifically, the Growth Hub network.<\/p>\n

New Government regulations regarding alternative finance for SME\u2019s<\/h2>\n

Banks are not known for their generosity but now new regulations will pressure them to refer SME\u2019s in need of financial support to alternative forms of financing.<\/p>\n

As British Businesses most of us have a \u2018love-hate relationship\u2019 with our banks.\u00a0 We know that we can\u2019t live without them but most of the time we wish that we could!\u00a0 The number of case studies that I have heard from BFPA members and other companies who have been refused even the most modest of financial support without virtually \u2018sacrificing their first-born\u2019 is legion.
\nRegular meetings with the British Bankers Association such as BFPA enjoys through its membership of the Engineering & Machinery Alliance (EAMA), has done little to convince me that even the experiences of the 2009 crash have moderated their apparent zeal to either abandon what they consider to be high risk companies or to simply \u2018chance their hand\u2019 by trying to derive income from unethical and often surreptitious fees, terms and conditions.\u00a0 Well, thanks to consolidated and persistent lobbying by many industry bodies, including BFPA, under new Government regulation, events have taken a step in favour of the companies.<\/p>\n

On the first of January this year the Small and Medium Sized Business (Finance Platforms) Regulations 2015 found their way onto the UK statute books. The aim of the Regulations is to help small and medium sized enterprises (SMEs) to obtain finance from alternative finance providers if their application for finance to a \u2018Designated Bank\u2019 has been unsuccessful.
\nThe, so called \u2018Designated Banks\u2019 are officially:
\n>Royal Bank of Scotland
\n>Barclays
\n>Lloyds Banking Group
\n>HSBC
\n>Santander
\n>Clydesdale and Yorkshire Banks
\n>Bank of Ireland
\n>Allied Irish Bank
\n>Danske Bank.<\/p>\n

If you are an SME and have made an unsuccessful application for finance to a Designated Bank, the new Regulations require the bank to seek your consent to provide information to \u2018Designated Platforms\u2019 i.e. to be referred.
\nDesignated Platforms are online platforms or portals approved by the Government that will seek to match the SMEs financing needs with the most suitable lender(s) for their circumstances.\u00a0 So as to ensure that competition was maintained, the Government stipulated that there had to be at least three platforms.
\nDesignated Platforms are:
\n>Bizfitech
\n>Funding Xchange
\n>Funding Options<\/p>\n

Other similar sites will surely be developed if they haven\u2019t already by the time we go to press with this article.
\nHaving seen demonstrations of these products I would liken them to \u2018Zoopla for Finance!\u2019\u00a0 Applicants are asked to provide a modest amount of data about themselves, including of-course, how much money they are seeking and on what terms, at which point the platforms or \u2018websites\u2019 search the market and offer a selection of alternative finance providers in order of suitability or match to the applicants expressed criteria.<\/p>\n

Needless to say, as with any Government initiative there are eligibility conditions but again, they are not too onerous.
\nApplicant companies must:-
\n–\u00a0 have a turnover of up to \u00a325 million
\n–\u00a0 have an address in the United Kingdom
\n–\u00a0 carry out commercial activities as its principal activity
\n–\u00a0 not be part of a group which as a whole has an annual turnover which is equal to or greater than \u00a325 million;<\/p>\n

Products within the scope of the Regulations include:
\n> Overdrafts
\n> Loans
\n> Invoice Finance
\n> Asset Finance
\n> Credit cards
\nThe designated banks are not compelled to offer this alternative funding if certain conditions apply.\u00a0 They are:-
\n– the value of the finance facility applied for is less than \u00a31,000;
\n– the facility applied for is sought for a period of less than 30 days;
\n– the bank is aware that the business is subject to a statutory demand for payment, enforcement proceedings or other legal proceedings in relation to payment obligations arising under an existing finance facility;
\n– the bank is aware that the business is subject to a formal demand
\n– the reason the SME has turned down the bank\u2019s offer due to price considerations<\/p>\n

The only \u2018exemption\u2019 that caused a little concern was that regarding price considerations.\u00a0 In theory, one might argue that the less ethical banks could claim that any given offering was appropriate but that their pricing was simply too high for the customer\u2019s appetite and\/or resources.\u00a0 Subsequent discussions with the regulators and the British Bankers Association suggested that this kind of behaviour was highly unlikely and would reflect very badly upon any of the designated brands that might consider taking such an unethical approach to the new regulations.\u00a0 Let\u2019s examine the process more closely.
\n>If a lending application for an \u2018in scope\u2019 product is unsuccessful, e.g. turned down or the bank offers a facility on a different basis to the one applied which the SME rejects (but not on price grounds) the bank will seek the consent of the SME to make a referral to the Designated Platforms.
\n> This will occur at the time the decline is communicated or when the SME declines the alternative offer.
\n> If consent is given, the bank will send specified information regarding the application to all 3 Designated Platforms on the next working day.
\n> The specified information is:
\n> the Business Name, postal and e-mail address and telephone number
\n> the amount and type of finance requested
\n> the legal structure of the business (limited company, limited partnership, partnership sole trader, or other)
\n> the period in years and months that the business has been trading for and receiving income
\n> the date by which the business requires finance or made the application<\/p>\n

As with all new regulations there is always a bedding-in period during which all stakeholders will scrutinise the effectiveness of the new rules.\u00a0 BFPA will report back on any developments in this area.
\nTo conclude, there is no doubt that these new regulations are good for SME\u2019s and will encourage competition amongst funding providers.\u00a0 Such competition can only apply downward pressure upon prices, availability and associated T&C\u2019s.
\nBFPA members are encouraged to visit any one or all of the above referenced new sites by \u2018googling\u2019 their names directly.\u00a0 They may also come across other similar sites as they emerge.\u00a0 They might even wish to visit such sites prior to approaching their banks in order to establish a measure against which their own bank may be compared.<\/p>\n","protected":false},"excerpt":{"rendered":"Engaging with Government Understanding the new Government Departments designed to support Business BFPA CEO, Chris Buxton seeks to shed some light on the structure of at-least part of the new Government Structure that seeks to help UK Business forge a strong future in the post-Brexit economy. In what is still only a matter of weeks","protected":false},"author":5,"featured_media":0,"parent":0,"menu_order":167,"comment_status":"open","ping_status":"open","template":"","meta":{"_acf_changed":false,"content-type":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"acf":[],"yoast_head":"\nEngaging with Government<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/bfpa.co.uk\/engaging-with-government\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Engaging with Government\" \/>\n<meta property=\"og:description\" content=\"Engaging with Government Understanding the new Government Departments designed to support Business BFPA CEO, Chris Buxton seeks to shed some light on the structure of at-least part of the new Government Structure that seeks to help UK Business forge a strong future in the post-Brexit economy. In what is still only a matter of weeks\" \/>\n<meta property=\"og:url\" content=\"https:\/\/bfpa.co.uk\/engaging-with-government\/\" \/>\n<meta property=\"og:site_name\" content=\"British Fluid Power Association\" \/>\n<meta property=\"article:modified_time\" content=\"2017-02-07T10:44:33+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/bfpa.co.uk\/wp-content\/uploads\/2015\/05\/Screen-Shot-2016-10-06-at-10.00.55-750x589.png\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@bfpaofficial\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"25 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/bfpa.co.uk\/engaging-with-government\/\",\"url\":\"https:\/\/bfpa.co.uk\/engaging-with-government\/\",\"name\":\"Engaging with Government\",\"isPartOf\":{\"@id\":\"https:\/\/bfpa.co.uk\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/bfpa.co.uk\/engaging-with-government\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/bfpa.co.uk\/engaging-with-government\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/bfpa.co.uk\/wp-content\/uploads\/2015\/05\/Screen-Shot-2016-10-06-at-10.00.55-750x589.png\",\"datePublished\":\"2015-05-21T16:36:08+00:00\",\"dateModified\":\"2017-02-07T10:44:33+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/bfpa.co.uk\/engaging-with-government\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/bfpa.co.uk\/engaging-with-government\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/bfpa.co.uk\/engaging-with-government\/#primaryimage\",\"url\":\"https:\/\/bfpa.co.uk\/wp-content\/uploads\/2015\/05\/Screen-Shot-2016-10-06-at-10.00.55.png\",\"contentUrl\":\"https:\/\/bfpa.co.uk\/wp-content\/uploads\/2015\/05\/Screen-Shot-2016-10-06-at-10.00.55.png\",\"width\":\"904\",\"height\":\"710\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/bfpa.co.uk\/engaging-with-government\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/bfpa.co.uk\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Engaging with Government\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/bfpa.co.uk\/#website\",\"url\":\"https:\/\/bfpa.co.uk\/\",\"name\":\"British Fluid Power Association\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/bfpa.co.uk\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Engaging with Government","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/bfpa.co.uk\/engaging-with-government\/","og_locale":"en_US","og_type":"article","og_title":"Engaging with Government","og_description":"Engaging with Government Understanding the new Government Departments designed to support Business BFPA CEO, Chris Buxton seeks to shed some light on the structure of at-least part of the new Government Structure that seeks to help UK Business forge a strong future in the post-Brexit economy. In what is still only a matter of weeks","og_url":"https:\/\/bfpa.co.uk\/engaging-with-government\/","og_site_name":"British Fluid Power Association","article_modified_time":"2017-02-07T10:44:33+00:00","og_image":[{"url":"https:\/\/bfpa.co.uk\/wp-content\/uploads\/2015\/05\/Screen-Shot-2016-10-06-at-10.00.55-750x589.png"}],"twitter_card":"summary_large_image","twitter_site":"@bfpaofficial","twitter_misc":{"Est. reading time":"25 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/bfpa.co.uk\/engaging-with-government\/","url":"https:\/\/bfpa.co.uk\/engaging-with-government\/","name":"Engaging with Government","isPartOf":{"@id":"https:\/\/bfpa.co.uk\/#website"},"primaryImageOfPage":{"@id":"https:\/\/bfpa.co.uk\/engaging-with-government\/#primaryimage"},"image":{"@id":"https:\/\/bfpa.co.uk\/engaging-with-government\/#primaryimage"},"thumbnailUrl":"https:\/\/bfpa.co.uk\/wp-content\/uploads\/2015\/05\/Screen-Shot-2016-10-06-at-10.00.55-750x589.png","datePublished":"2015-05-21T16:36:08+00:00","dateModified":"2017-02-07T10:44:33+00:00","breadcrumb":{"@id":"https:\/\/bfpa.co.uk\/engaging-with-government\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/bfpa.co.uk\/engaging-with-government\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/bfpa.co.uk\/engaging-with-government\/#primaryimage","url":"https:\/\/bfpa.co.uk\/wp-content\/uploads\/2015\/05\/Screen-Shot-2016-10-06-at-10.00.55.png","contentUrl":"https:\/\/bfpa.co.uk\/wp-content\/uploads\/2015\/05\/Screen-Shot-2016-10-06-at-10.00.55.png","width":"904","height":"710"},{"@type":"BreadcrumbList","@id":"https:\/\/bfpa.co.uk\/engaging-with-government\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/bfpa.co.uk\/"},{"@type":"ListItem","position":2,"name":"Engaging with Government"}]},{"@type":"WebSite","@id":"https:\/\/bfpa.co.uk\/#website","url":"https:\/\/bfpa.co.uk\/","name":"British Fluid Power Association","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/bfpa.co.uk\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/bfpa.co.uk\/wp-json\/wp\/v2\/pages\/329"}],"collection":[{"href":"https:\/\/bfpa.co.uk\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/bfpa.co.uk\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/bfpa.co.uk\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/bfpa.co.uk\/wp-json\/wp\/v2\/comments?post=329"}],"version-history":[{"count":0,"href":"https:\/\/bfpa.co.uk\/wp-json\/wp\/v2\/pages\/329\/revisions"}],"wp:attachment":[{"href":"https:\/\/bfpa.co.uk\/wp-json\/wp\/v2\/media?parent=329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}