HELP for firms is “poorly communicated and confusing”, an investigation by MPs has today warned, a criticism echoed by North-East business leaders.

The Government’s strategy comes under fire for having no fewer than 600 support schemes with “different objectives, eligibility, funding and contact points”.

Ministers are also criticised for a hands-off approach to local enterprise partnerships (Leps), the bodies meant to attract investment and jobs, despite their “inconsistency of performance”.

And the alarm is raised over the continuing struggle many firms face to obtain finance, “nearly seven years on from the banking crisis”.

Adrian Bailey, chairman of the all-party business, innovation and skills select committee, said the inquiry found the Government’s approach to be “largely positive”.

But he added: “We found businesses are not always clear about the support on offer, finding it poorly communicated, confusing and not focussed enough on business need.

“If the UK is going to become one of the best places in Europe to start, finance and grow a business, then Government needs to do better at getting the word out so businesses know what support exists”.

The verdict was backed by Ross Smith, director of policy at the North-East Chamber of Commerce (NECC), who said: “Support for start-ups and existing businesses alike is too superficial and not well publicised.

“Business support in the UK must be revitalised to continue the impressive rate of private sector growth and employment we have witnessed recently.”

Mr Smith said obtaining finance was still a problem for “smaller firms, where options open to them are often limited”.

He added: “Putting actions behind the words, and providing small businesses with improved financing options, is eminently sensible yet has gained little momentum in recent times.”

Today’s report urges the Government to investigate the lending problems facing small and medium-sized enterprises (SMEs), using the new British Business Bank.

It also calls for the Green Investment Bank, which backs firms helping with the switch to a low-carbon economy, to be given the “borrowing powers” that it badly needs.

It casts doubt over an ambition for UK exports to reach £1 trillion by 2020, saying: “We are not convinced that this is a target the Government expects to meet.”

A year ago, the same committee criticised a grant offer of just £500,000 to each Lep, over two years, but only if they could find ‘matched funding’, usually from cash-starved local authorities.

One year on, today's report concludes: “It was disappointing that many of the concerns we have heard previously about LEP funding have persisted.”

Next month’s Budget is expected to confirm plans to give 500 firms financial support through the British Business Bank each year, an initiative dubbed ‘Help to Grow’