Money from central government designed to be used to promote enterprise is not being properly targeted by the Labour-run Haringey Council to help Haringey businesses, it has been revealed by the Liberal Democrats. Haringey’s £1.5 million allocation from the Local Authority Business Growth Incentives Scheme (LABGI) has not been earmarked in the Council 2007/08 budget in any specific way to promote, assist or support business.

The news comes on top of revelations at a council committee last week that many of Haringey’s services to support business are still not up to standard. Telephone messages left with business support agencies are not returned and information on websites not regularly updated. Liberal Democrat councillors say these issues raise huge concerns about the way Haringey promotes enterprise in the borough.

Haringey Liberal Democrats believe that this huge amount of money should be clearly and solely used to support and promote business. They say that the Government press release trumpets the award of “Over £300 million to encourage business growth”; however, this is misleading and incorrect if the council is not using this for business promotion at a local level.

Cllr Wayne Hoban, Lib Dem Regeneration spokesperson, comments:

“Despite their claims to the contrary, we know that Labour-run Haringey only provides a ‘fragmented’ business support system. How can this system get any better if money designed to promote business is only used as a plug to fill holes in the budget?”

Cllr Robert Gorrie, Deputy Finance spokesperson, adds:

“When the Liberal Democrats brought the issue of promoting local business to Haringey Council in February, Labour talked about their “focus on promoting enterprise” and promised a “charter with local businesses”. But when given the opportunity to actually do something tangible with funds provided under this scheme Labour are again failing to deliver.

“Surely Haringey Council should use the funds to support the positive impact that a vibrant business community can have in the borough. This could include a campaign to put neighbourhood business managers in place with a particular focus on encouraging the employment and training by local business of local young people.”