Government broadband scheme was a success

More than 55,000 small and medium businesses (SMEs), employing up to one million people across the UK, have taken advantage of a Government scheme to boost their broadband connectivity, figures published today show.

The Government’s Broadband Connection Voucher Scheme was designed to get SMEs moving into a faster digital market and connected to superfast broadband. The initiative - which has now allocated all of the £40m available funding since April 2015 - gave businesses the chance to apply for grants of up to £3,000 each to cover the costs of installing faster and better broadband. Hugely successful, the scheme has helped a variety of businesses, including architects, estate agents, mechanics, events coordinators, cafes, graphic designers and caterers.

Businesses were able to use their voucher to get a broadband connection from a wide variety of suppliers. More than 800 suppliers participated in the scheme and the vast majority (86 per cent) of the value of the scheme went to smaller suppliers around the UK. The “big three” Internet Service Providers - BT, Virgin Media and TalkTalk - accounted for only 14 per cent of the total value of the vouchers.

Businesses benefitting from a broadband connection delivered by the scheme are reporting, on average, a £1,300 per year increase in profits, with a new job being created for every four new connections. This means that for every £1 the UK Government invested in the scheme, more than £5 will be returned to the UK economy.

Whilst the scheme has now closed, its success has stimulated the market, with some suppliers now offering similar support through offers of free installation and equipment. This means that those eligible businesses who didn’t apply for one of the Government’s Broadband Connection vouchers still have time to apply for a free or discounted broadband boost for their business.

Vouchers issued:

Scotland

2,899

Wales

2,887

Northern Ireland

2,411

North West

8,254

North East

1,721

Yorks and Humber

7,377

Midlands

6,799

London

14,545

East of England

1,459

South East

3,114

South West

3,630