Thursday, 25 June 2026
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Small Business Digital Transformation: Government Launches £500m Tech Funding Scheme

Priya Sharma
Priya Sharma
Small business owner working on a laptop in a modern office

The £500m digital transformation scheme opens for small business applications. Photo: Reliable News

Small businesses across the UK can now apply for government grants of up to £50,000 under a new £500 million digital transformation scheme designed to boost productivity through the adoption of modern technology.

Grants are available for a wide range of digital investments including cloud computing, e-commerce platforms, CRM software, cybersecurity tools, and AI applications. Businesses must submit a digital transformation plan as part of their application.

The grants will cover up to 50% of eligible costs, with businesses required to match-fund the remainder. Priority will be given to sectors with lower rates of digital adoption including manufacturing, hospitality, and construction.

Business Secretary Jonathan Reynolds said the scheme will help small businesses leapfrog into the digital age, unlocking productivity gains that benefit their bottom line and the wider economy. Official figures show small businesses with high digital adoption are 50% more productive than those with low adoption.

The Federation of Small Businesses has welcomed the scheme, calling it targeted, practical support. A dedicated helpline and online guidance materials have been published to support applicants.

This article is based on reporting from:

Department for Business and Trade
Priya Sharma
Priya Sharma

Business & Economy Editor

Priya Sharma reports on business, finance, and the UK economy. She holds an MBA from London Business School and has written for The Financial Times and The Times.

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