Many small businesses are spending thousands of pounds on advice when there are numerous free portals of advice available, according to a survey by the Department for Business, Enterprise and Regulatory Reform (BERR).

The survey of 1,086 small businesses found that one in ten small firm owners spent over £1,000 on business consultants last year. The top area in which SMEs paid for advice was to calculate staff NI contributions (39%) and 30% turned to consultants for advice regarding the writing of business contracts.

"In a downturn every penny counts and we don't want small businesses spending money on advice and information that the Government provides free of charge," said Pat McFadden, Minister for Employment Relations.

"There are a range of sources of information available and I would urge all small business owners to familiarise themselves with the Business Link online resources."