UK Chancellor sets out e-government roadmap for SMEs

UK Chancellor of the Exchequer, Gordon Brown, kicked off his pre-budget tour by announcing a plan to invest a reported £52m in Internet services to help small businesses.

In a speech made in Sunderland yesterday, Brown reaffirmed the government's commitment to make the UK the best place in the world for ecommerce. Brown said he would reform tax regimes to help SMEs and strive for lower Internet costs.

He also revealed the Treasury is considering two schemes designed to give greater access for SMEs to government services via the Internet and call centres.

The first scheme will involve the creation of an "e-tax adviser" to allow SMEs to register online with the Inland Revenue, Customs and Excise and for VAT. The service is expected to cost the government £32m, and will also provide information and advice on relevant regulations.

The second scheme is an expansion of the Department of Trade and Industry's (DTI) Small Business Service which will make the Internet a key reference point for SMEs. The DTI has asked for £20m to complete this project.

Industry figures welcomed the announcement as a move in the right direction. Jonathan Robinson, MD of Internet solutions group NetBenefit, said the initiative was "in the right spirit" but had to be well targeted, with the government ensuring SMEs knew where to go to get the best advice.

David Hands, deputy head of press and parliamentary affairs for the Federation of Small Businesses, said: "We are very pleased that the government will perform this one-stop service for businesses to register, because it will speed up the process of business registration and tax collection."

Hands added, however, that the move may not affect enough small businesses as many are still not online. Hands said his figures showed only ten per cent of micro-businesses - business with less than ten employees - had Internet access.