Brown's budget disapointment for IT


Brown's budget disapointment for IT

Nick Huber

Chancellor Gordon announced an extension of tax credits for research and development and the option of leased computers for schoolchildren in today’s budget.  

Building on measures in previous budgets Brown extended the research and development tax credit for medium-sized companies.

In education, Brown said that older pupils would be offered the opportunity to lease computers for home use.

The chancellor said that the government would stick to the £21bn in savings recommended by the Gershon efficiency review which was published last year.

The efficiency savings will rely heavily on new IT systems and savings in government procurement. This will mean more pressure on public sector organisations to deliver value from their IT investments and to cut routine running costs of IT departments.

IT suppliers can expect further pressure from the Office of Government Commerce, which co-ordinated government procurement, to deliver more competitive deals.

Brown also added that Britain must also become the “world’s leading centre” for research, science and knowledge-based industry.

Business and IT groups were hoping for the Budget to include tax incentives to encourage investment in training, broadband and to help the UK compete with low-cost services from overseas.

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