By Stephan Roth
Grant Shapps pulled the plug on the ‘Help to Grow: Digital programme’ aiding small business’ following a “lower than expected” take up.
In a statement, Shapps said Government “cannot justify the continued cost” of the Help to Grow: Digital programme. Applications for discounts close on 2 February 2023 and discounts issued for eligible software are set to be redeemed within 30 days from the date of issuance.
Launched in March 2021, the scheme offered funding, advice and guidance on approved software solutions to small and medium-sized (SMEs). Programme attendees received a discount of up to 50 per cent or £5,000 on software purchases as well as 1:1 business advice in order to boost their digital capabilities.
In response to the termination, Federation for Small Businesses chair, Tina McKenzie, said: “It has barely been around for a year. Although uptake is low, firms should be given the time to reap the benefits instead of having it snatched away during a time of economic crisis”.
The end of the scheme comes following interim Chancellor, Nadhim Zahawi’s introduction of a Financial Services and Markets Bill in July — intended to make the UK a “leading centre for technology”.
Figures published in July by Innovate Finance suggest the UK is already a dominant player in the fintech space, with UK firms amassing £7.6bn in funding in the first half of 2022, second to the US (£20.8bn) and double the amount of Germany (£2bn) and France (£1.9bn).
“The decision creates a vacuum in public policy tech. Turning Help to Grow into Help to Slow – at Christmastime no less – is a Scrooge move”, she adds.
Despite the Help to Grow: Digital programme finished, the Help to Grow: Management scheme will remain in place.
The Help to Grow: Management scheme intends to give 30,000 small and medium-sized businesses (SMEs) access to subsidised management and financial training, however, a lack of applications and continued costs have spelt the end for the programme.
Government figures suggest 1270 business leaders have opted into the scheme, however, research conducted by Labour indicates that a mere 402 SMEs have completed the £520m training programme.
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