The Government scheme to support SMEs with tech support and software costs has officially been shut down due to minimal uptake.
Despite a marketing campaign and an expansion of the eligibility criteria, the Department for Business, Energy & Industrial Strategy (BEIS) has said that less than a thousand discounts had actually been used by SMEs.
Help to grow: digital was first launched in January 2022 and offered eligible businesses a maximum discount of £5,000 towards the costs of software. When it was first announced, the Government said the scheme would be in place for three years.
New business applications will no longer be accepted from 2 February 2023 onwards. Any discounts will need to be redeemed within 30 days of being issued.
To be eligible for the scheme, SMEs had to:
- have between 1 and 249 employees
- be a UK company registered with Companies House or on the Financial Conduct Authority's Mutuals Register
- be incorporated and actively trading for over a year before they apply for the discount
- be purchasing the software for the first time.
Businesses can still submit applications for discounts through the Government website, where you can also find a full list of eligible software.
Businesses disappointed over scheme's end
The decision to shut down help to grow: digital has been met with disappointment from small business leaders who believe SMEs should still be offered support when adopting the latest software.
Tim McKenzie, policy chair at the Federation of Small Businesses (FSB), said:
"Turning help to grow into help to slow - at Christmas time, no less - is a Scrooge move. It has barely been around for a year, and although uptake is low, firms should be given the time to reap the benefits instead of having them snatched away during a time of economic crisis.
"This decision creates a vacuum in public policy on technology adoption.
"Removing the help to grow: digital scheme on top of that smacks of a Government that is doing nothing more than carving an anti-growth legacy for itself."
At the time, former business secretary Kwasi Kwarteng highlighted the importance of the scheme, saying that businesses should adopt new technologies to "future-proof" themselves.
Kwarteng said:
"I want UK businesses to be primed and ready to seize all the opportunities on the horizon as we build back better from the pandemic.
"Adopting technology means higher performance, and the help to grow: digital scheme is future-proofing our small businesses and putting the UK at the forefront of the worldwide digital revolution."
Other business support remains unchanged
Although the digital part of help to grow is ending, the Government is reminding businesses that the management scheme will continue to run, as well as British Business Bank's startup loan scheme.
The help to grow: management scheme invites small businesses to participate in a 12-week course to help develop skills and a business growth plan.
The programme is 90% funded by the Government, so businesses only have to pay £750. Delivered in partnership with Small Business Charter, courses are running at leading business schools across the UK.
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