As part of a reshuffle following the resignation of Work and Pensions Secretary, Peter Hain, Mr Timms has been appointed Minister for Employment and Welfare Reform at the Department of Work and Pensions.

At the last meeting of the Small Business Forum on Thursday, 10 January 2008, the FPB's Policy Representative, Matthew Goodman, was told that small businesses would play a significant role in implementing the Government's Enterprise Framework. He urged Mr Timms' replacement, Baroness Shriti Vadera, to keep that promise.

"Stephen Timms' departure has put the Government's progress on the Enterprise Framework in jeopardy," said Mr Goodman. "The danger is that, with this shift in personnel, the small-business agenda may be pushed further toward the margins at a time when it desperately needs to be centre stage."

Last year, entrepreneur Sean Taggart resigned from the Forum, citing its lack of real influence in Whitehall. In his resignation letter, Mr Taggart said it was ‘merely a tick box for an SME-engagement agenda'.

In the past, the FPB has been critical of the marginal role the Forum has played in developing business policy, compared to the Business Council for Britain. The latter, which includes representatives from big business, such as Sir Alan Sugar and Tesco boss Sir Terry Leahy, has the ear of the Prime Minister, the Rt Hon Gordon Brown MP.

However, Mr Goodman insisted that the FPB's direct access to BERR, which has the remit of encouraging business growth and creating competition, is more likely to bring about positive change for smaller firms.

Commenting on former investment banker Baroness Vadera's appointment, Secretary of State for Business, Enterprise and Regulatory Reform, the Rt Hon John Hutton MP, welcomed her skills and experience.

"Shriti Vadera's background in the City and at the Treasury is good news for the Department's engagement with business," he said. "She will be a valuable addition to the Ministerial team and a strong advocate within Government for the needs of enterprise."