Small businesses have been angered by reports that they will not be represented in the government’s new council of business advisers.

Earlier today Gordon Brown announced the creation of a council of senior business leaders, to advise him on how to improve the business environment and keep the UK economy competitive on the global stage.

The Business Council for Britain, which will meet twice a year, will also advise the government on whether policies are having a beneficial or detrimental effect on businesses, the prime minister said.

Hotly tipped as council members are Amstrad boss and star of BBC’s The Apprentice Sir Alan Sugar, Tesco chief executive Sir Terry Leahy, Vodafone chief executive Arun Sarin, Rolls-Royce chief executive Sir John Rose, chairman of HSBC Stephen Green and Damon Buffini founder of private equity firm Permira,

However, the UK’s small businesses, which have already urged new chancellor Alistair Darling to cut the tax burden they currently face, have expressed concern that the government is not hearing their voice.

A spokesman for small business lobby group the Forum of Private Business (FPB), told My Business: “With the scrapping of the small business council and the arrival of this new advisory body focusing, it would seem, on names from the big business arena, small companies seem to have been pushed aside by the new prime minister.

“Not content with burdening them with an increase in corporation tax in the last budget he now seems content to ignore them completely.”

Also today, Gordon Brown announced the formation of the Department for Business, Enterprise and Regulatory Reform (DBERR), which will assume many of the responsibilities from the Department of Trade and Industry (DTI).

Brown said: “The new department will be responsible for creating the conditions for business success, developing deeper and more effective engagement with business, with the ability to promote the competitiveness agenda across critical areas of government policy. It will provide support for the new Business Council.”

© Crimson Business Ltd. 2007