The UK is already an information economy, with knowledge-driven key
growth industries, and an information society where ICT is integral
to most activities. The challenge for the next government is to
build on this. The CSSA urges it to take the following key actions
to ensure continued growth.
Create a cabinet-level ministry for e-Business and
e-Government
Recent developments such as the RIP Act and
the Electronic Communications Act have demonstrated the need for
the creation of a cabinet-level ICT ministry. While existing
ministerial arrangements have served the UK well, it is time to
build on these if the UK is to be a global leader in ICT.
Appoint a local government e-Envoy
While central civil
government may achieve its targets for delivering 100% of public
services electronically by 2005, the CSSA doubts whether the same
can be said of local government, which is responsible for most
regular transactions with citizens.
Ensure 95% of the population has access to 10Mbytes/s broadband
by the end of the next Parliament
CSSA believes the single
most important action for the next government is to get UK
organisations online. "Online" no longer means via a low speed,
dial up connection, that capability has been met. We must now shift
to provide high bandwidth, "always-on" connectivity. An acceptable
"access" metric might be that the service is ready for use within
four weeks of order; pricing should reflect international benchmark
studies and the UK should aim to fall below the Organization for
Economic Cooperation & Development average in all cases.
Encourage separate ownership and development of local loop
infrastructure
To accelerate access and ensure widespread
availability on competitive terms the next government must
accelerate the unbundling of the local loop.
Introduce accelerated tax allowances, encouraging UK companies
to increase investment in ICT
We urge the next government
to promote investment in software by UK through accelerated tax
allowances for expenditure by business on software and services,
and the expansion of research and development taxation
provisions.
Promote the importance of information security to the future of
UK plc
Among other measures, the next government should
support a programme of information security practices, aimed
particularly at small and medium enterprises, and develop an
anonymous security incident reporting and analysis programme.
Remove National Insurance tax from unapproved share option
schemes
The decision to impose National Insurance on share
option schemes falling outside the current government's "approved"
schemes imposes, in effect, a discriminatory tax on employees.
Establish a long-term funding plan to ensure hi-tech UK
businesses have the resources to expand and partner
internationally
Government has a key role in helping
companies with cross-border trade and should subscribe to the Ovum
Holway Report recommendations.
Introduce a meaningful tax credit to encourage lifelong
learning
The phrase "life long learning", so favoured by
governments and in policy speeches, needs to be supported by
incentives that positively influence the behaviour of people after
they complete formal education.
Encourage closer links between government, industry and
academia
The UK has a good record in innovation, but a
poor one in nurturing inventions so they are commercially developed
and brought to market by UK enterprises. Overseas experience shows
a key to this transition is the development of close linkages and
clusters around academic institutions, government research agencies
and business.