SUPPORT agency Business Link is to axe more than half its 338-strong workforce ahead of expected budget cuts, despite claims it faces closure anyway.

Managing director Peter Watson said 194 jobs will be shed by next March, to enable the agency to work within streamlined budgets after next month’s comprehensive spending review announcement.

North West Business Link is headquartered in Preston and offers advice and support to small firms across the region.

It employs around 27 mobile staff on Merseyside who speak to firms face-to-face.

The function is currently funded by the Northwest Development Agency (NWDA) which faces closure by 2012, to be replaced by Local Enterprise Partnerships (LEPs).

And Business Link itself appeared to be doomed when business and enterprise minister Mark Prisk told a website in June: “We’re going to wind down the regional development agencies, and, as part of those, we’ll be winding down the regional Business Link contracts.”

Nevertheless, the agency has conducted a review to bring it into line with immediate budget reductions at the NWDA.

It said the review has also taken into account anticipated budget reductions for 2011/12, when funding is expected to be reduced further following next month’s Government spending cuts.

Mr Watson said: “We know there will be changes to the delivery of Government business support and a White Paper will be released in the autumn setting out the coalition’s proposals in more detail.

“The proposed restructure will allow us to be in a position to work with the Government and the emerging Local Enterprise Partnerships in order to allow for a smooth transition.

“In the meantime, Business Link will continue to offer support to North West companies and those considering starting a business.

“We are very much open for business, and have a wealth of expertise here waiting to help businesses get growing again.”

He said its phone and face-to-face advisers will continue to work with growing businesses across the region.

The reduction of 194 roles from the total workforce of 338 will affect all departments, the agency said.

It confirmed formal consultations with its staff had begun, and that the planned redundancies were likely to take place before the end of March, 2011, “in order to be in a position to continue to deliver the Business Link Service across the region within the new budgets”.