LEADING IN THE SMALL BUSINESS E-REVOLUTION

Proposals to revolutionise Government services for small business through use of the Internet were set out today by the Chancellor Gordon Brown.

The Chancellor was in Sunderland talking to local business people on the second leg of his Pre-Budget tour. He was accompanied by David Irwin, Head of the Small Business Service, in his first day in post and Lord Trotman, the former Chairman and Chief Executive of the Ford Motor Company, who has been reviewing the small business measures already introduced.

The Chancellor said that he was determined that:

"Britain will lead in the next stage of the Internet revolution. Our target is that within three years we want to become the world's best environment for electronic commerce."

As a pledge to delivering these aims the Chancellor has already allocated £10 million to the Small Business Service from the Invest to Save Budget to develop a user-friendly electronic gateway between business and government.

To further help small business, the Chancellor said he was considering two bids for funds from the Capital Modernisation Fund. These projects are:

for the Small Business Service to provide information and advice via the Internet and through a call centre. It will create a cutting edge service to business through link-ups the speed of service; and
for the Inland Revenue/Customs & Excise to create the 'e-tax adviser.' An electronic gateway would allow businesses to register as a company with Inland Revenue and Customs and Excise and register for VAT. It will be easier for business to find and follow regulations, provide a two-way service so business can access data as well as submitting forms and the service will be available anytime and anywhere.

The Treasury is now working with these Departments on the details of their bids to ensure the most effective service will be provided to small businesses.

NOTES TO EDITORS

The text of the Chancellor's remarks in Sunderland is available from the Treasury Press Office on 0171 270 5185.

The £2.5 billion Capital Modernisation Fund provides resources for innovative capital or PFI projects which improve key services or public infrastructure. The £230 million Invest to Save Budget is aimed at providing support for projects that involve two or more public bodies getting together to deliver services that are innovative, joined up, locally responsive and efficient. The successful bidders in the second round were announced on 15 February 2000.