SMALL AND medium-sized businesses are being helped to improve IT literacy and boost productivity.

Horsfield and Smith, business advisers and chartered accountants, based on Walmersley Road, Bury, are piloting a Government scheme to offer employees a computer at home for a fraction of the high street price.

As part of a salary sacrifice scheme, Horsfield and Smith employees can lease up-to-date PCs and software as a tax-free benefit. A small monthly fee will be deducted from their wages, resulting in savings of between 40 and 50 per cent on the overall high street value over the computer's life-time.

Nigel Billings, IT partner at Horsfield and Smith, said: "From a business perspective, it's a cost-neutral way of improving skills and boosting productivity. Besides extending the employee benefits package, we expect staff to become increasingly computer savvy as they become more familiar with the technology and various applications available.

"In the long term we hope it will provide greater working flexibility by enabling people to dial the office from home and access facilities such as online diaries "