Government closes 'Help to Grow: Digital' scheme for businesses

1.2 million SMEs eligible, but only 1,000 vouchers redeemed

The Government is closing its 'Help to Grow: Digital' scheme, with less than two months for SMEs to apply for the remaining technology discount vouchers.

The Department for Business, Energy & Industrial Strategy (BEIS) said it will not accept new applications after 1st February 2023. In addition, eligible software discounts will have to be redeemed within 30 days of the issue date.

Although the programme has helped SMEs grow, BEIS said take-up for the scheme has been lower than anticipated. As a result, the Government is unable to justify why the scheme should continue to cost the taxpayer money.

When then-Chancellor Rishi Sunak introduced Help to Grow in March 2021, he promised it would last three years.

By closing the programme now, the Government says it will be able to redirect its efforts toward other small-business support mechanisms, ensuring they receive support in the most effective way possible.

The goal of the 'Help to Grow: Digital' programme was to provide 100,000 SMEs with free and impartial advice on how technology can help their business, and to provide vouchers worth up to £5,000 to cover up to 50% of the costs of purchasing pre-approved software.

However, SMEs have redeemed fewer than 1,000 vouchers since the launch, well short of expectations, despite expanded programme eligibility, a marketing campaign and favourable user feedback.

The Government says initiatives like 'Help to Grow: Management' and the British Business Bank's Start Up Loans - available to assist aspiring business owners in expanding their firms - are still available to help small firms.

Industry body techUK was unimpressed with the announcement, pointing out that it means SMEs 'have, at a crucial time, lost key funding to adopt new digital technologies and boost productivity.'

TechUK was a major proponent of the scheme and collaborated closely with the Government on its introduction. It also offered guidance throughout the programme's lifetime, which helped to secure several improvements that broadened the programme and made 1.2 million SMEs eligible for support.

Neil Ross, Associate Director of Policy at techUK, said closing Help to Grow: Digital would send negative signals about the UK's ambitions at a time when governments across Europe are taking measures to encourage firms to utilise technology better.

"Encouraging digital adoption, boosting SME productivity and further digitising the UK economy is needed now more than ever as the UK faces a significant economic slowdown," he added.

TechUK is also urging the Government to reconsider its support for digital adoption and review measures that will let the market take the initiative, such as tax incentives for SMEs to re-train employees and adopt productivity-boosting technologies.