UK government must be more decisive over digital economy

Posted by Louise Tate

The UK government needs to be more decisive if it is to ensure that the country remains competitive in terms of the global digital economy.

According to the Economist Intelligence Unit (EIU), the British government could jeopardise the growth in IT Outsourcing and IT Support if it does not clarify IT infrastructure investment plans.

Denis McCauley, an analyst at EIU, said the organisation had decided to downgrade the UK's global digital economy ranking from 13th to 14th for a number of reasons.

"The UK's loss of one place in the table is due less to a deterioration in its performance and more to significant improvements registered by Taiwan and South Korea," McCauley claimed.

He added: "[The downgrading was also] due to the greater uncertainty surrounding the government's overall digital development strategy."

The coalition government has been supportive of private investment in next-generation internet infrastructure, but plans to use cash left over from the digital TV switchover to bolster investment with public money.