Ministers have been accused of being “hooked” on costly private sector consultants after dishing out a £1.6 million contract to assess a scheme that was ditched after just a few months.
Rishi Sunak announced the “Help to Grow: Digital” scheme in his 2021 Spring Budget, while he was Boris Johnson ’s Chancellor.
It launched in Autumn 2022 - but closed to new applications in December, blaming “low take-up.”
Mr Sunak said the scheme, which was supposed to run until 2025, would “help businesses become more innovative, more competitive and more profitable.”
Consultancy firm RSM UK were handed a contract worth £1,559,789 in January 2022 to “join the programme ahead of launch to produce data collection tools and conduct process evaluation.”
Seema Malhotra MP, Labour ’s Shadow Minister for Business and Consumers, said: “British firms are crying out for help in the face of rising prices, yet all Rishi Sunak delivered was a piecemeal scheme that hasn’t worked.
“This is yet another example of a government hooked on expensive private consultants, using millions in taxpayers’ money to feed their spiralling addiction.
“Tories are failing small businesses with a budget that did little to support our fantastic entrepreneurs. Labour would cut business rates for small business, legislate to tackle late payments and make Britain the best place to start and grow a business. It’s clear Labour is the party of small business.”
A Department for Business and Trade spokesperson said the value of the contract had been reduced to £400,000 when the scheme was axed.
They said: “Value for money for taxpayers was crucial for the Help to Grow Digital scheme, which is precisely why it was closed when take-up was lower than expected.
“We have since refocussed efforts towards other support mechanisms for small businesses, ensuring they get the help they need in the most efficient and productive way possible.”
