Small Business Minister Margaret Hodge said she aimed to address the concerns of small firms. They frequently tell the Government they are confused by the amount of business advice and schemes that are available.

The centrepiece of the consultation, which will also take in the views of the Regional Development Agencies (RDAs), regional chambers of commerce and others, will be to reduce the number of support schemes from the current 3,000-plus to under 100.

Ms Hodge said:

"We want to take some of the hassle out of getting help to run a business. By cutting down the number of support schemes without cutting the amount of support, we believe we can do that."

The Simplifying Business Support consultation will last until 14 September.