SMALL business management buy outs, family successions and sales to new buyers are not being helped by government policy, it is claimed.

The importance of the transfer of small businesses is failing to be recognised by the Government, warns the Association of Chartered Certified Accountants (ACCA).

Ilyas Patel, ACCA Spokesperson for the North West, said: "With business failures at their highest level in three years, ACCA urges the Government to focus more attention on facilitating the efficient transfer of business.

"The cumulative effect of unnecessary closures of otherwise successful enterprises has serious implications for the UK economy and employment.

"Existing businesses must be placed on an equal platform with start-ups.

"As a matter of priority, the Government should address the many issues concerning business transfers.

"For example, handing over the running of a business can be extremely complex and stressful for the owner, and reluctance to let go of the reigns can often mean that the transfer of know-how and skills is rushed."

He added: "Decisions made in this transition period are of crucial importance to the longevity of an enterprise.

"There are also a number of tax, legislative and administrative issues, such as high inheritance tax, which act as barriers to both people thinking about transferring ownership and their potential successors."