Budget was wasted opportunity says IT industry

The IT industry has reacted coolly to the 2008 Budget, delivered by Chancellor Alistair Darling today.


The IT industry has reacted coolly to the 2008 Budget, delivered by Chancellor Alistair Darling today.

Nick Kalisperas, director of the IT suppliers’ group Intellect gave a qualified welcome to the government's move to grant more public sector contracts to small and medium-sized enterprises (SMEs) as a positive step, but added more clarification is needed.

"Setting a target like 30% raises a range of questions about how it will be enforced, how SMEs will be encouraged to participate and how equitable it really will be. The chancellor today simply announced the creation of an advisory committee on SME access. We are waiting to hear who will sit on the committee.

“It is vital that not only a wide range of sectors, including technology are represented, but also that SMEs are consulted about what the practicalities of such an initiative and what they feel would really help them."

Kalisperas noted that Brown's Business Advisory Council, created last year, contained just one technology company when "the IT sector represents at least 10% of GDP".

Intellect represents over 800 technology companies of all sizes. "SMEs access to public contracts has been a real issue, particularly in the NHS's National Programme for IT and Intellect has been working to improve the situation for smaller companies," he said.

Kalisperas blasted the government for failing to invest in technology education. "It smacks of a lack of appreciation of the real role of technology in the UK economy and is very disappointing," he said.

Investment in Britain’s digital infrastructure was also absent from the Chancellor's statement, said Janice McGinn, research director, CIO Practice, at analyst The 451 Group.

“We need a clear government commitment to getting the UK’s internet infrastructure on par with the rest of the world,” she said. “Broadband capacity is limited and limiting business. High quality links are patchy. We can’t compete with US, Japan and Singapore if we don’t create an infrastructure that supports industrial strength e-commerce and web services.”

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