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March 23, 2010

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UK premier outlines online plan to save billions

BRITAIN can save billions of pounds a year by embracing online technology in public services, Prime Minister Gordon Brown said yesterday, weeks before an election being fought partly over soaring government borrowing.

Brown said the Labour government, which has funded plans to bring broadband Internet to nearly all homes by 2012, would open access to public data to transform the way citizens communicate with the state.

He said further investment to build a next generation, superfast broadband network over the coming decade would bring "new, cheaper, more personalized and more effective public services to people."

The government proposes to pay for this faster network by 2017 with a 6 pound (US$9) a year tax on phone lines. The opposition Conservatives say the levy is unnecessary and they would scrap it.

Brown's ambitious plans will need to avoid the pitfalls struck by previous government computerization projects which have gone hugely over time and over budget.

A National Health Service program to digitize patient records is forecast to cost at least 12 billion pounds, has missed a number of deadlines and has been condemned by the head of a parliamentary committee as a "disaster."

Britain's budget deficit is heading toward a record 12 percent of gross domestic product this year and Labour and the Conservatives are tussling over how best to cut it.

Labour promises to halve the deficit over four years. The Conservatives say that is not enough.

Opinion polls show no party is on course to win an overall majority in the parliamentary election expected on May 6, which could leave the Liberal Democrats as kingmakers in a hung parliament.

Part of both Labour and the Conservatives plans to get borrowing down after an 18-month recession will fall under the heading of "efficiency savings" - finding cheaper ways to do government business.

The government had said more than 10 billion pounds could be saved over the next four years through "smarter government."

Brown said finance minister Alistair Darling would give more details in his budget tomorrow.


 

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