Trade Secretary Patricia Hewitt announced a radical package to reform the Department of Industry's business support, worth up to £1 billion a year.
In future it will be directed to increase prosperity in areas such as enterprise, investment, innovation and skills and where there is clear evidence of market imperfection.
Ms Hewitt said: "All business support will be rigorously monitored and analysed to measure whether it has achieved its objectives and offers value for money.
"Evidence from this analysis will help target funds so the wider economy benefits."
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article