Digital Britain means access for all

Carter: The UK is at the forefront of the global digital economy

The current economic climate has made it increasingly clear just why a comprehensive plan to create a “digital Britain” is needed.

If we want to shorten the downturn and emerge stronger into the upturn, it is imperative that we cultivate the digital and communications industries, where there is a strong growth story and substantial opportunities to create revenue and jobs.

It is estimated that advertising revenue fell by between six and 12 per cent last year ­ – equivalent to £1bn to £2bn. In contrast, internet advertising revenue is predicted to grow significantly. And by 2012, £1 in every £5 of all new commerce will be spent online. If one thing is clear during these uncertain times, it is that the technology and communications industries will be at the heart of any successful economies of the future.

Not only do the communication industries hold a significant place in the UK economy in their own right ­ – equivalent to eight per cent of GDP – ­ they are also critically important for every business in the country. The digital economy underpins our whole economy.

In our Digital Britain interim report, we have built on work from government, industry and regulators to hone in on the key problems and solutions that will shape the UK’s path to creating a modern knowledge economy.

We are starting from a strong position. In Britain, we have been at the forefront of the global digital economy. Our take-up of first-generation broadband has grown faster than almost all other major economies. And our willingness to adopt digital technology has led to significant productivity gains that have played a major role in closing the historic productivity gap with other leading European nations.

But we cannot afford to take this for granted. We will need to be ambitious to secure the country’s position as a frontrunner. Our productivity still lags well behind the US and president Obama has pledged that technology and infrastructure will form a fundamental part of the US economic recovery plan. The French government has also just launched a reform strategy ­ – France Numerique 2012. And fresh challenges also emerge as successful Asian countries begin to move to the knowledge economy.

I am confident that a lot of the progress will be made by creative people in commercially funded technology and communications businesses. However, we are mindful that conditions for investment are the worst we have seen in many years. We will be looking at ways that the government can create a dynamic investment climate for UK digital content, applications and services and build on a good universal level of service to encourage investment in the next generation of broadband.

Another pivotal element of the strategy will be making possible the widespread online delivery of public services, which will require the universality of both availability and participation.

At present, the take-up of e-government services by citizens is only slightly higher than the European average and take-up by businesses, particularly small and medium enterprises, is slightly below average. If we are successful in establishing universal broadband, the potential benefits for e-government are enormous ­ – not least the case for a vast improvement in costs and efficiency.

But this will only work if we can ensure the entire population is empowered to access and use digital media. We must aim for our e-skills to be among the top three globally. And we will need to tackle the issue of why 40 per cent of those who can get broadband now choose not to take it.

We have reached a highly significant turning point. The global economic downturn has brought into focus just how important it is to the future of the country to guarantee every citizen access to the infrastructure, technology and skills needed to fully participate in the digital economy. If successful, we will achieve greater efficiency in the delivery of public services, new employment opportunities and, ultimately, a stronger, fairer and more innovative society. The establishment of a digital Britain is both a need and a great opportunity.

Stephen Carter is minister for communications, technology and broadcasting at the Department for Business, Enterprise and Regulatory Reform

Have your say

Ahead of the publication of the full Digital Britain report early this summer, Lord Carter wants to gathers opinions, ideas and feedback on the initial findings from those already working in the sector.

“Their co-operation will be essential if we are to fully grasp the opportunities that are available to us,” he said.

To have your say, send your opinions to digitalbritain@berr.gsi.gov.uk

The report is available through the Department for Business web site at www.berr.gov.uk