The government has announced changes to its Small Business Service (SBS) to make it a smaller, more sharply focused policy unit within the Department of Trade and Industry, with close links to HM Treasury.

The streamlined SBS reflects its move from delivering services on the ground to becoming an expert policy unit on small business issues throughout Government.

Margaret Hodge, minister for small business, said: "Businesses have told us that they want a stronger SBS with more clout in Government. We've responded to that by moving from delivering services, which is often better done outside of Whitehall, and focusing on influencing policy on the big issues that matter most to business such as enterprise, better regulation and business support.

"It is important to take stock of how we support business, build on this competitive edge and ensure the whole of government is developing policies for a more enterprising UK," Hodge added.