Government 'has business broadband responsibility'

The government has been warned that it has a responsibility to ensure the UK benefits from a top business broadband set-up in order to allow online trade to expand.

It has been advised by the Federation of Small Businesses (FSB) to do what it can to put in place the latest technology as part of its internet infrastructure.

A study by the organisation has shown that e-commerce is now a vital tool for British firms as they seek to survive the difficult economic period.

Links to adequate business broadband also allow them to dissolve national boundaries and reach out to customers in other countries.

Four in ten companies currently trade with other nations in the European Economic Area, but the FSB is sure this number could be significantly higher if obstacles were removed.

One of the major problems encountered by firms is the lack of high-speed internet, which is said to be putting many off the idea of moving their business to the web.

John Walker, national chairman of the FSB, said: "The biggest obstacle for many small businesses is the lack of broadband speeds and so as a result they cannot compete online.

"The FSB is calling on the government to ensure that all small businesses are connected and have access to the broadband speeds they need to allow those that want to, to do business online."

Currently, nine per cent of small companies have no access to speeds of at least 24Mbps across any of their sites, while a quarter of organisations must work only with 2Mbps.

This is said to be a huge problem when it comes to creating an effective online presence and managing it to garner the best results.

In his recent autumn statement, chancellor George Osborne said he is making £100 million available to improve business broadband connections in ten British cities.