AN announcement made last week will have been like music to the ears of small business leaders in the North- East, who are likely to benefit from a share of £350m that has been earmarked by Government to help small businesses cope during this financial decline.

Secretary of State for Skills John Denham said small businesses would be the focus for the Government funds to help them train their staff through the Train to Gain service, which is jointly funded in this region by the Learning and Skills Council North-East and regional development agency One NorthEast.

Small and medium-sized enterprises (SMEs) account for 60 per cent of the employment market in the North-East, a total of 80,400 enterprises. Of this market, more than 60,000 employ fewer than five staff. This funding will therefore have a significant impact in this region.

It will allow local entrepreneurs to train staff easier than ever before, while also continuing to develop the skills of those working in North-East small businesses.

A key focus for the future will be to allow funding for “bite-sized chunks” – small units or modules of qualifications in subjects known to be important to SMEs, such as business improvement, team-working, customer service and risk management. This is an important development and something we, in the North- East, are well positioned to manage.

Our successful leadership and management programme is also to be extended, so more SMEs can benefit, including firms with only five to ten staff.

Nick Brown, Minister for the North- East and the Government’s Chief Whip, said of the announcement: “There is no doubt that staff training makes business succeed and that is why I am delighted that we have been able to announce these new measures.”

David Frost, director general of the British Chambers of Commerce, said: “Making more funds available to improve staff skills will benefit small firms.”

■ Chris Roberts is North-East director of the Learning and Skills Council.