Government figures warn of digital divide

Mr Byers highlighted figures for new business start-ups and the numbers of businesses trading on-line which show that:

• Within the Greater London area Camden had a rate of 146 new start-ups per 10,000 residents, more than four times Greenwich's rate of 32. No area of the North East reached the UK average of 38 start-ups, whilst Wellingborough and Mansfield, both in the East Midlands, had rates of 90 and 23 start-ups respectively;
• the DTI's own International Benchmarking Study 2000 showed wide regional variations in the percentage of businesses trading on-line, with Greater London (33) and Yorkshire and Humber (30) having the highest percentages of businesses equipped for e-commerce, whilst the North East and West Midlands have 23 per cent, and the South West has 24 per cent; and,
• the Benchmarking Study also showed that 96 per cent of businesses in London have internet access, compared to 82 per cent in the North East, and that 79 per cent of businesses in London have a marketing website, against 60 per cent in the North West and 58 per cent in the South West.

Mr Byers said:

"It is clear that there are wide variations in both the number of new businesses being registered in different parts of the UK, and in the ability of existing business to make the most of the opportunities e-commerce has to offer.

"Encouraging regional enterprise and e-business are government priorities and we are already taking action. Earlier this year we announced the recruitment of 100 extra advisors to help businesses across the country get on-line, and the establishment of 'internet incubator' projects in a number of regions, which will provide new e-businesses with back up and support.

"In addition we will shortly announcing a series of grants to individual projects to boost e-enterprise in deprived areas.

"Action is needed at a local level to encourage new businesses to grow and to help existing and traditional industries in all of our regions to adapt to the new global internet economy. The UK simply cannot afford to allow the development of a 'digital divide'."