Prompted by fears that the UK is falling behind the US and other countries in creating the right environment for e-commerce and other IT development, the UK Government plans to help business catch up. Prime minister, Tony Blair, announced that the newly formed ‘performance and innovation unit’ of the Cabinet Office is to conduct a study on how to create the right environment to encourage e-commerce in Britain. E-commerce is the fastest growing market place in the world economy, the prime minister said, and the study is part of the Government’s aim to help the country benefit from the growth. Lord Falconer, the minister without portfolio, will head the inquiry which will bring together teams from several government departments including the Department of Trade and Industry, the Treasury and the Home Office, as well as private sector expertise. The teams will look at the legal, fiscal and technological issues involved and report directly to the prime minister. On the same day, Peter Mandelson, the minister for Trade and Industry, reiterated earlier promises of a restructuring of the DTI’s 1bn pound budget that will channel more money into encouraging companies to upgrade their businesses to a ‘knowledge-based’ structure by adopting scientific breakthroughs at universities and promoting e-commerce. The changes will be detailed in a white paper to be published on Wednesday.
