A business support body upheld by the Cabinet Office as a national model is under threat from Falkirk Council, which is considering a move to keep Business Gateway funding under its own administrative control.

Falkirk for Business (FFB), currently a not-for-profit enterprise trust, faces the prospect of being "taken in-house" and run as a council service.

According to the council's policy and resources committee, moves to transfer the service from the private to the public sector would be made on the grounds of management efficiency, transparency, increased flexibility and "clearer, streamlined and simpler structure with no 'them' and 'us' between the Council and delivery bodies."

David Gardiner, chief executive of FFB said the proposed changes were a "big risk". "Any change that is more than a tweak to the existing service puts it at risk. The council has no track record of delivery, no management attuned to the delivery of business services. The business community have been very vociferous in saying that they want and value the service that we as an enterprise trust provide.

"We want to make sure that we offer the best service for the client, we have a strong track record. The money they get is ring-fenced so it's not a cost-cutting exercise, we are the experts at managing these things, we have done it for years. The simple truth is that business people don't want to go to the council for business advice. They go to them for regulatory and other information, but it's a different culture."

Responsibility for grassroots support for local businesses, delivered through Business Gateway, was formerly the responsibility of Scottish Enterprise and Highlands and Islands Enterprise until being transferred to local government by the Scottish Government in 2008 and 2009. A report last year by consultants Ekos gave a generally positive picture of the performance of the service, which is mostly administered by organisations at arms' length from councils.

Ronnie Smith, executive director of Business Enterprise Scotland, which represents Scotland's enterprise trusts, said: "It's very disappointing that Falkirk wants to take the service in-house as it has been very effectively delivered by Falkirk for Business and predecessor Falkirk Enterprise Action Trust. I don't know anyone who thinks this is a good idea."

A spokesman for Falkirk Council said: "Following discussions with Falkirk for Business, [the council] has commissioned an independent consultant to review the way ahead for business support. We expect the outcomes of the review to help maintain the excellent support currently available. This review is still ongoing and the findings will be reported to the council in the next few weeks."

FFB estimates its support for business to date can be valued at £41.5 million in increased revenue. Last year the group claims to have enabled 360 new business starts, supported 1157 new businesses, and "helped to create and sustain" 545 new jobs.

Falkirk's business support model was cited as an example of best practice by the business-education think tank the Goodison Group in Scotland.

In April, Laurence Rockey of the Cabinet Office Cities Policy Unit wrote to Falkirk chief executive Mary Pitcaithly, seeking information on "how [Falkirk] Council might intend to devolve more responsibility in the economic development space to FFB in future" in order that English "core cities" might learn "how in Falkirk you have made [a business-led approach] possible".