From April next year, the five existing services – Business Link Black Country, Business Link Coventry & Warwickshire, Business Link West Mercia, Business Link Staffordshire and Business Link Birmingham and Solihull – will be replaced by a single, regionally-managed and locally delivered service.

The new streamlined and more accessible service is being introduced to tackle underperformance in productivity and business start-ups, which are the two key challenges that face the region's economy.

A financial and economic appraisal of the new service by KPMG forecasts the service will help 89,000 businesses each year with basic information and provide intensive support for a further 17,800.

This compares with the expected performance of the five existing services of around 80,000 assists and around 5,000 intensive assists.

The increased value to the economy will come from the increase in intensive help – where companies are given in-depth support and assistance to boost productivity, create jobs and expand – which will be enabled by the consolidation of many of the back office services of the current providers.

It is forecast the benefit of this increase in intensive support will generate a £400 million improvement in the economic performance of the region by 2010.

The new service will comprise a Gateway through which all companies in the West Midlands can access support and information, a Brokerage service to link firms that need in-depth help with the right initiatives and programmes, and specialist help for business start-ups and manufacturing.

Particular focus in the new Business Link will be on helping the creative and knowledge industries and business and professional services to grow and also on reaching minority ethnic companies, social and women's enterprises and rural businesses.

Dr Richard Hutchins, Advantage West Midlands Corporate Director for Economic Development, said: "Our region's underperformance in productivity and enterprise is something we are highly aware of and is something we are tackling head-on.

"The new Business Link service will combine the experience and expertise of staff at the existing providers within a system which will deliver real benefits to the region.

"Businesses across the West Midlands can expect to be given more opportunity to access the support they need and can expect a greater number of experienced and skilled advisers.

"The West Midlands Enterprise Board has set itself the target of increasing productivity in our region by £1 billion by 2010 and the new Business Link service and the greater intervention this will have on business will go a long way towards this."