Training and mentoring schemes have received major boosts after funding announcements made by Prime Minister David Cameron and business minister Mark Prisk.

Under the scheme announced by Cameron, £250m funding will give businesses the ability to design, develop and purchase the vocational training programme.

Businesses will be able to bid for shares of the fund in the New Year.

Business secretary Vince Cable says: “We have to fundamentally alter the relationship between employers and the state – giving employers the space and opportunity for greater ownership of the vocational skills agenda, including the chance to bid for direct control of public funds. This will encourage greater competition in the market as we strive for sustainable growth.”

In a separate announcement, business minister Prisk announced yesterday £1.2m funding to the Small Firms Enterprise Development Initiative (SFEDI)’s Get Mentoring scheme alongside plans recruit 10,000 volunteers from small and medium-sized enterprises (SMEs) to become business mentors.

This is in addition to 11,000 business mentors already available through www.mentorsme.co.uk, and 5,000 mentors to be trained as part of a package of support for female entrepreneurs announced earlier this month.

Prisk says: “Mentoring can deliver significant economic benefits from just a small commitment of time and resources. Building a relationship with a mentor can have a positive effect on your business, whether you are just starting up or are already established.”