Wednesday 19 January 2022 / 6:00 AM Business / Jonathan Reynolds

Government Help to Grow scheme fails to deliver as wages stall

New analysis from Labour has revealed that, the government’s Help to Grow: Management scheme would only reach 6 per cent of eligible businesses.

To date, the scheme has only reached 810 firms, less than a fifth of a percent of eligible SMEs.

Last month, the Department for Business, Energy and Industrial Strategy’s own internal assessments found that with the parallel Help to Grow: Digital scheme, “there is a significant risk around meeting the full target number of small and medium businesses that Ministers have asked to be reached”.

This analysis comes as ONS figures show real wages falling and 600,000 fewer people in employment than before the crisis, underlining the severe recruitment challenges facing business.

Labour has announced measures to address the immediate energy crisis facing families and businesses – saving households at least £200 on the energy bills as well as a £600 million contingency fund to support struggling firms, including energy intensive industries

Jonathan Reynolds MP, Labour’s Shadow Secretary of State for Business and Industrial Strategy, commenting on the analysis, said:

“The Conservatives have become a high tax party because they are a low growth Government.

“The Prime Minister is too mired in scandal to lead. Energy bills are going up, inflation is up and wages are stalling because the Government are asleep at the wheel.

“Labour would save most households £200 or more on their energy bills and get our economy firing on all cylinders with our plan to buy, make and sell more in Britain.”