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IT conspicuous by its absence in the Budget

IT conspicuous by its absence in the BudgetIT experts have welcomed the decision to offer more contracts to small businesses in yesterday's Budget, but bemoaned the lack of any commitment to improving the UK's digital infrastructure.

Chancellor Alistair Darling announced in his first Budget speech that 30 per cent of public sector contracts should be awarded to small to medium-sized enterprises (SMEs), which could precipitate a fundamental change to IT procurement.

However, business leaders have expressed their disappointment in the absence of any plans to update the country's broadband infrastructure.

"We need a clear government commitment to getting the UK's internet infrastructure on par with the rest of the world," Janice McGinn, research director at the 451 Group, told Computerworld UK.

"Broadband capacity is limited and limiting business," she continued. "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 ecommerce and web services."

Though the emphasis on delivering more business to small enterprises was welcomed in principle, the practical implications of the scheme have been questioned.

Nick Kalisperas, director of the IT supplier Intellect, told the publication: "Setting a target like 30 per cent 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 also announced the launch yesterday of a Public Value Programme looking into the specifics of major public sector IT projects.


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