Business

Plug pulled on superfast broadband connection for businesses

The voucher scheme offered grants of up to £3,000 for super fast broadband
The voucher scheme offered grants of up to £3,000 for super fast broadband

EXCLUSIVE: BUSINESSES across Northern Ireland are set to lose out on millions of pounds in grant aid after a government scheme to move firms on to superfast broadband ran out of money.

Companies had been invited to apply for vouchers worth up to £3,000 to help them access internet speeds of at least 80Mbps and in turn boost economic growth.

Available to firms in Belfast and Derry in its early stages, the scheme was opened up to the rest of the north this year.

Hundreds have been successful in gaining grants but a consultant said the "rug was pulled from under the scheme" earlier this week.

The vouchers scheme was part of the Super Connected Cities programme run by the Department for Culture, Media and Sport in London.

Derry received £2.2 million while there was £13.7m for Belfast City Council (which it topped up with a further £3m).

The money also helped to pay for free wi-fi in public buildings and outdoor spaces.

It is understood that as few as 2,000 vouchers had been issued when the initial deadline of March 2015 passed.

At that point, the scheme was extended and made available to businesses across the north - although they had to compete with firms across Britain for a share from a new central £40m pot.

A source said there were "murmers last week that it was running out of money, but on Friday applications were still being accepted. On Monday, the scheme was closed".

A spokeswoman for Belfast City Council, which administered the scheme, said the initiative was initially due to run until March 2015, but was extended.

“We can confirm that the Department for Culture, Media and Sport (DCMS) has advised that funding for the Superconnected Voucher Scheme has come to an end," she said.

"A report outlining the success of applying the scheme in Belfast and the major benefits it has brought to businesses will be presented to the council’s Strategic Policy and Resources Committee at its meeting on Friday, 23 October."

While some business chose to apply individually for vouchers, others applied in clusters such as enterprise parks.

A sources said: "Uptake was low in Belfast because businesses already had access to superfast broadband.

"One it was opened up, there were companies in places like Fermanagh and mid-Ulster which are towards the bottom of the fast internet league table but they will miss out because there wasn't enough time."

A DCMS spokesman said: "We were always up front that this was a first come, first served scheme.

"We have noticed a ramp up in the number of applications in the last number of weeks and I can confirm that it has now closed."