Budget misses IT/digital opportunity says Socitm

Yesterday's budget missed the opportunity to use investment and incentives in IT and the digital sector to boost the economy, social inclusion and public sector efficiency, says the public sector IT professionals association, Socitm.

While the announcement of 21 Enterprise Zones with free, super-fast broadband is welcomed as a stimulus to industry - including IT and the digital sector - and funding for 12 university technical colleges is acknowledged for its potential contribution to addressing the technology skills shortage, these measures are in practice relatively modest.

Socitm would like to have seen tax or other incentives for home and flexible working and associated developments in telehealth - things which could save public the public purse whilst also helping reduce carbon, mitigate the effect of escalating energy costs and improve public services. There are no incentives for public sector to invest in sustainable use of IT, for example green data centres, and no incentives for investment in digitally assisted communications to reduce travel costs and the economy's carbon footprint.

Incentives to speed up the development of shared services and the joining up of local public services especially local authorities, health and education services, would have been welcome, some of which at least are limited by the way budgets are allocated and savings reported. Socitm would like to see more done to overcome digital exclusion. For example, the Government's own Digital Champion has pointed out that the average household saves £560 a year by shopping and paying bills online, but adding this amount to the state pension would cost the Treasury £6bn a year. Economic growth will depend on broadband, electronic service and demand stimulation. Additional investment in infrastructure to speed up the diffusion and penetration of superfast broadband would have been welcome, building on the BD UK programme and the investments currently limited to Enterprise Zones, widening the possibility of short term growth beyond those areas experiencing relatively lower reductions in public spending.

'There is still a suspicion and fear of IT in the minds of some Government decision makers because of the well-publicised public sector IT project fiascos (although these occur in both public and private sectors)' says Jos Creese, President of Socitm. ' This may account for a reluctance to be more specific about the potential for technology to reform public services in particular.'