UK to miss Blair's online SME target

The government is sure to miss its target of getting one million SMEs trading online by 2002, according to a report by the British Chambers of Commerce (BCC).

The BCC study, which will be presented to Douglas Alexander, the e-minister, later today, suggests that the government should scrap its target to get a million small firms trading online by 2002, and concentrate on improving public confidence in ecommerce, invest more in tackling cybercrime, and improve access to broadband services.

It concludes that the government's target to get one million businesses trading online by next year is unlikely to be met, actually hinders progress, and is an irrelevance to business.

The report also recommends the government drop the controversial changes to the IR35 legislation, and extend temporary 100 per cent capital allowances for SME investment in IT.

According to the government's own figures, 24 per cent of SMEs are now trading online, down from 27 per cent in 2000. The UK is in joint second on the list of key developed nations, behind Australia.

Sally Low, ebusiness policy adviser at the BCC, said: "Business and government share the same ambition for Britain's small firms to develop world class ebusiness, but if we're going to realise this potential, we need to get the basics right, think small first and let business make it happen.

"British companies are not in the business of fulfilling aspirational targets set by any government. They are however alert to the competitive benefits of trading online, and where these exist, businesses will drive and will respond. The role of government should be one of enabling business in the most efficient and effective manner, and not to preoccupy itself with assessing and measuring targets."