Summary
Our goal is to develop
the UK as a world leader for electronic business
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The Government
will:
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transform
businesses by:
– providing support to companies in their
transition from e-commerce to e-business through
the work of UK online for business.
-
develop
broadband by:
– continuing to work with industry to
promote the extensiveness and competitiveness
of the UK's broadband market.
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support
the framework by:
– modernising the regulatory, legal and
fiscal framework in the UK to meet the needs
of the e-economy.
-
increase
productivity through skills by:
– implementing a strategy to boost productivity
by making the UK the number one country for
the supply of ICT skills.
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Productivity
improvements are the key to sustained increases
in living standards and therefore a central aim
of Government
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For the UK to succeed as
a nation achieving prosperity for all, it is essential
that businesses improve their productivity. Historically,
the productivity performance of the UK economy has been
relatively weak; macroeconomic instability and microeconomic
failures have inhibited productivity and growth[4].
This is why the Government is committed to maintaining
economic stability. Productivity improvements are the
key to sustained increases in living standards and therefore
a central aim of Government.
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e-business
has never been more relevant
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Many factors contribute
to productivity improvements, including innovation,
domestic competition, capital investment, better management
and, of course, ICT. ICT continues to play an increasingly
significant role in improving businesses' organisational
efficiency and their ability to compete. It breaks down
geographical, financial and social barriers to market
entry. It allows companies to compete in a global, increasingly
sophisticated and well-educated market, where customers
demand innovative and higher quality products and services.
It opens up more effective ways of work or even completely
new ways to working, to enable companies to cut costs
or increase sales. That is why we believe e-business[5]
has never been more relevant.
In March 2002 the Office
of the e-Envoy (OeE) and the Department of Trade and
Industry (DTI) commissioned an independent study that
aimed to understand how the UK's e-economy compares
internationally. The results are extremely encouraging
- the UK was found to have the second best environment
for e-commerce in the world[6],
behind only the US.
Going forward, our strategy
for the next year focuses on four key themes. First,
providing ongoing support for business in their transition
from e-commerce to e-business through the work of UK
online for business. This support will continue to be
developed to assist businesses at whatever stage they
are in adopting and using technology.
Second, continuing to work
with the industry to promote the extensiveness and competitiveness
of the UK's broadband market. Broadband services can
change the ways businesses operate, enabling new markets
to be reached with potentially beneficial effects on
productivity and competitiveness. Over the next year
we will pilot a series of innovative broadband content
pilots and launch the UK Broadband Task Force, consisting
of a team of regional broadband and procurement experts.
Third, modernising the regulatory,
legal and fiscal framework in the UK to meet the needs
of the information, communications and technology economy.
The UK has a light-touch regulatory framework conducive
to e-commerce that compares well internationally. Over
the next year we will continue our work to remove legal
barriers to doing business online. In particular we
will revise the Consumer Credit Act, work to level the
international playing field for VAT treatment, and continue
to create a supportive environment for intellectual
property rights.
Finally, implementing a
strategy to increase productivity by making the UK the
number one country for the supply of ICT skills. Improvement
of skills is a crucial part of our broader drive to
help businesses improve their productivity. Individuals
and businesses need to develop the skills to exploit
the new challenges arising from the e-economy. Over
the next year we will work to improve young people's
perception of ICT industries and the nature of demand
for such skills.
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