HL Deb 26 January 2004 vol 656 c14WA
Lord Taylor of Warwick

asked Her Majesty's Government:

Why their Internet project, UK Online for Business, failed to meet its key targets and is to be disbanded in April. [HL837]

Lord Sainsbury of Turville

In 2000, the year the UK Online for Business programme was initiated, the Government had the following targets for business use of ICT:

  1. (1) 1.5 million micro, small and medium-sized businesses to be online by 2002;
  2. (2) 1 million micro, small and medium-sized businesses to be trading online by 2002;
  3. (3) the performance of the UK's micro and small businesses to be up with the best in the world.
The first target of 1.5 million SMEs going online was reached in 2000.

The second target of 1 million SMEs trading online was missed, with a total of 490,000 businesses meeting the target in 2002. Since the target was set, it has become clear that many SMEs have not seen trading online as the best way for them to use ICT most effectively. Businesses have found that they can achieve real benefits through the use of technologies that allow them, for example, to manage internal processes, communicate more effectively with customers and suppliers, and work collaboratively with partners. This fact has been reflected in the aims of the UK Online for Business programme, which now seeks to encourage more integrated, sophisticated use of ICT by business.

The third target for the UK to be a world leader in e-business is one that we are still striving to reach. The DTI's international benchmarking study 2003 shows that while businesses in other countries are making a more sophisticated use of ICT than UK businesses, the gap between the leaders and the UK is not great. Other recent surveys have shown positive signs, for example, the Economist Intelligence Unit's e-readiness survey 2003 placed the UK third in the world.

Rather than being disbanded, UK Online for Businesses will be integrated into the new offer on business support, to be unveiled in April. This is part of the restructuring of the existing system of support, to provide a smaller number of schemes and a simpler way for businesses to access them. The support and promotion of ICT usage by business will continue to be a key focus for DTI.