A SUPPORT service for businesses in the North West has today been axed in the latest round of Government cuts.

Small Business Minister Mark Prisk said Business Link would be 'wound down' as the Conservatives and Liberal Democrats abolish regional development agencies.

Business Link Northwest employs 340 and is funded by the North West Development Agency (NWDA), which will itself be replaced by a ‘local enterprise partnership’.

Business Link is designed to advise companies on survival and tapping into grants and finance, but critics have labelled it a 'costly failure'.

The North West arm of the agency is based in Preston, where hundreds of call-centre advisers and bosses are based.

Other staff pay visits to businesses and offer support on the ground.

Small Business Minister Mr Prisk said Business Links had spent 'too much time signposting and not enough time actually advising'.

He has suggested a simpler online service and call centres could replace the agencies.

Additionally, private sector bodies, such as chambers of commerce, could also take on more prominent roles.

The Department for Business Innovation and Skills said it was 'business as usual' for Business Link Northwest until a Government white paper later this summer sets out when and how the NWDA will be replaced.