Breckland Council has rejected a request to spend �40,000 supporting companies set up with the help of a new county council-funded business start up service.

Cabinet members today agreed to accept a two-year �80,000 grant from Norfolk County Council to launch a scheme giving new businesses setting up in the district advice and support.

However, they turned down the county council's request that Breckland give an extra �40,000 for more support that would help the companies keep going, citing Breckland's projected �2.7m budget gap in 2016.

Labour leader Terry Jermy said: 'I have been involved in the Portas pilots in Thetford and been inundated with people who want to set up a business, but soon realised there's a lack of support out there. I think the council has to look for win, win projects like this. It seems such a shame.'

Council leader William Nunn said he wanted the cabinet to look again at how it supports businesses. He said: 'I want to make sure we are doing what businesses want rather than what we think businesses want.'