Monthly Reports

PRIME MINISTER

Report from the e-Minister and e-Envoy - 7th May 2002

Introduction

This is our fourth monthly report on progress against the UK online strategy as set out in the UK online annual report published in December 2001. The strategy details how we are driving forward the programme of change to get individuals, businesses and Government online.

A detailed progress report on each of the commitments made in the Report is, as usual, being published on our website at www.e-envoy.gov.uk. This shows that of the 113 commitments announced, 101 are on track, 9 completed, and 3 are behind schedule.

This month's report covers the following key issues: Budget 2002, Broadband, PIU Report into Privacy and Data Sharing, and Local Government On Line.

Budget 2002

The Chancellor presented Budget 2002 on 27 April. The following measures were announced aimed at driving forward the e-agenda:

• NHS
  The Department of Health has published Delivering the NHS Plan, which summarises the further steps now to be taken to deliver the NHS Plan in light of April 2002 Budget. An important part of the investment and reform package is information and IT and a detailed implementation plan is now in preparation, which will set out the programme for delivering key services including electronic booking of appointments across the NHS by 2005 and electronic patient records by 2008.

• Enterprise
  A new regime was announced for providing tax relief for costs of intellectual property, goodwill and other intangible assets, which came into effect from 1 April 2002. The aim is to encourage business to take up new opportunities in knowledge-based economy.

• Innovation
  The Budget included an extension of the R&D tax credit, introduced in Budget 2000 for small and medium-sized companies, to large companies.

• Easing burden of payroll - e-filing
  Better use of ICT is key to enabling businesses to deal with the complexity of payroll obligations, but we recognise the concerns that smaller employers have around compulsory e-filing. In line with the recommendations of the Carter Review of Payroll Services, a three-stage move will be implemented towards universal e-filing of employer PAYE returns. Smaller employers will have more time, and financial incentives worth a total of £420m will be put in place to encourage them to make greater use of IT. A commitment was also made to improve support services and advice for employers from Inland Revenue.

Broadband

There are now over half a million broadband customers in the UK. The 20,000 new broadband connections being made each week represent a rate of growth that outstrips the equivalent demand for mobile phones and dial-up Internet when they were first introduced.

The UK now also has more competition at both network and service levels than many European countries. This is primarily being driven by low prices. As an example, TeleWest has recently announced its intention to trial a cut-price broadband service that will for the first three months cost only £13.48 per month - cheaper than some existing standard Internet packages.

This offer illustrates the genuine competition that exists between different infrastructure technologies in this country. What is more, new and potential delivery mechanisms such as satellite, fixed wireless and 3G mobile means there will be an increasing number of networks competing to deliver broadband services to consumers.

The footprint of broadband services is also expanding. Over two-thirds of the population - a total of 16 million households - will have access to affordable broadband by the end of May. BT plans to upgrade 100 more exchanges over the coming month allowing ADSL services to be rolled out to more than fifty further cities and towns in the UK. In addition, satellite services and leased lines remain universally available and offer a potential solution to current gaps in rural provision. We are watching developments on satellite particularly closely, in light of recent market developments.

We are continuing our work to increase the availability of broadband services throughout the country. Projects financed by the £30m broadband fund are now being implemented and we continue to investigate how the public sector can most effectively procure broadband.

PIU report into Privacy and Data-sharing

The Performance and Innovation Unit last month published its long-awaited report into Privacy and Data-sharing. The report makes several detailed recommendations for improving the use of personal data by Government to deliver smarter services, while enhancing personal privacy. We recognise that gaining the public's trust in electronic services is vital to getting the UK online. We will be taking forward action together with the Lord Chancellor's Department, and in consultation with the Office of the Information Commissioner, to implement the recommendations of the report, including:

• Taking forward action on the responses received to the consultation on the Public Service Trust Charter launched by the report - so as to build greater public trust in the way public services handle personal information - and the consultation on the introduction of legislation to enable public bodies to share personal data with the consent of the data subject.

• Introducing standards for recording common items of data and for labelling data sets.

• Developing a programme of smartcard demonstration pilots in specific service areas.

• Adopting a series of pilot projects to help assess the costs and benefits of increased Government involvement in the development of authentication technologies.

The PIU report has developed some very clear strategies and recommendations for transforming services by the better use of personal data. Clearly there is a delicate balance to be maintained between making better use of personal data and protecting privacy. The actions recommended in the report offer a way forward, which we will follow up vigorously together with the other players in the field.

Local Government On Line

On 8 April DTLR published its plan setting out how it will work with local government to help them deliver all their public services online by 2005. e-gov@local: Towards a national strategy for local e-government - which now goes out for consultation until 28 June - sets out the way forward, proposes the building blocks for e-Government and outlines action at national, regional and local levels. OeE are actively involved in the debate surrounding the shaping of the strategy and will ensure that the emerging document will contain a set of priority actions for local authorities.

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