A REGIONAL Business Link which was unsuccessful in its first attempt to win the Small Business Service (SBS) franchise has failed in the final round.

David Irwin, chief executive, SBS, announced that Business Link Country Durham has been unsuccessful, with the group Action for Employment winning the bid. It will deliver the SBS advice and support services from April, 2001.

Business Link County Durham employs 45 people and it will be up to bosses at Action for Employment to decide if they keep their jobs.

Mark Lovell, chief executive at Action for Employment, said he could not comment on what would happen to the jobs at Business Link. He will meet with the organisation for the first time on Friday.

Mark I'Anson, an entrepreneur who helped lead the County Durham bid, said: "I am very disappointed. A lot of effort and consultation with the people who matter - local businesses - was put into the bid."

In the Tees Valley, the Tees Valley Partnership has been awarded the SBS franchise service. The bid originally submitted by Business Link Tees Valley (BLTV) failed in May to win the franchise, and the partnership - of which Business Link is a member - was established to spearhead the renewed effort.

Partnership chairman Alistair Arkley said the news "reflected our ability to bring together the experience of very many people with experience of the needs of small business."

The SBS will be delivered by Business Link Tees Valley. It has secured funding of £1.4m, an increase of 20 per cent on its current budget, enabling it to increase the range and remit of the services required by the SBS.

George Rafferty, director of Business Link Tees Valley, said: "It secures the jobs of all Business Link Tees Valley staff."

The SBS is part of the Government's drive to improve the overall quality of business support available to small and medium-sized firms