Background to the Business Information in Government Study

The Business Information in Government (BIIG) Study was launched early in 1999 to review how business interfaces with government and the role of a single business register. Based upon the findings, make recommendations to improve the way in which government deals with UK businesses.

Funded under the Invest to Save Budget the Study is part of the “Modernising Government” programme of work. The Study is being led by five organisations (‘stakeholders’): Companies House, Department of Trade & Industry, HM Customs & Excise, Inland Revenue (including the former Contributions Agency) and the Office for National Statistics.

The wider objectives of the BIIG Study are to:

• Define a single, co-ordinated gateway between Government and business
• Improve efficiency, especially in multi-agency transactions
• Explore new and better channels for service delivery
• Reduce the costs of compliance to business
• Make tangible progress towards meeting the Modernising Government agenda
• Recommend when and how businesses should identify themselves to government.

The project will look at the legislations and technologies that will be required to meet the needs of the business community.

An aspect of BIIG involved consulted the business 'community' and its representative bodies. The objectives of the consultation were to:

• Raise general awareness and knowledge within the business community about the Study, its objectives and potential benefits to business and Government
• Provide business with the opportunity to comment on their needs and requirements
• Canvass business views on the practical issues of improving transactions and interfaces between government and businesses
• Identify the level of interest and expectations in having a Unique Business identification and/or single business registration service
• Examine the points at which business interacts with Government and the effectiveness of these interactions.

The findings are based on the responses received to the questionnaire survey and the interviews conducted with businesses and business representative bodies. The findings across each of the consultation mechanisms are consistent, indicating that the conclusions drawn in this section are robust.

Views on BIIG

Business is generally supportive of the Study…

There is a broadly positive view of the BIIG study and its objectives from the business community. Most businesses welcomed the study and the way in which it proactively sought the views of businesses and to understand their priorities.

…but it must lead to tangible benefits to retain that support

The majority of business representative bodies consulted indicated the need for the study to emphasise the potential benefits for business and that these benefits needed to be tangible.

Current Business Interaction with Government

Most business contacts with government are for ‘regulatory’ enforcement…

Businesses currently deal with a wide range of government departments. Which departments they deal with are dependent partly on the size and nature of the business. However the most common departments appear to be those which are of a revenue collecting or regulatory; Inland Revenue, HM Customs and Excise and Companies House.

Figure 7-4 below shows the frequency of contact that business has with government departments:

18% of the respondents claimed to talk to government departments every week, 30% monthly and 14% only once a year.

Most businesses deal with government regularly…

The study suggests that the majority of business interactions with government takes place on a monthly and quarterly basis and that much of this interaction relates to the completion of obligatory returns.

Nearly 20% of the respondents claimed to spend between 21 and 40 person days dealing with Government. In addition, nearly 20% said that they spend more than 41 or more days per annum interacting with Government.

…they use a range of communications mechanisms, mostly traditional

Regardless of business size, the majority of government interactions take place via post, fax and telephone. The Internet appears to be little used for communications by either government or business, even though a significant number of businesses (of all sizes) reported that they had access to the Internet.

Smaller businesses tend to use intermediaries to protect themselves from dealing direct with government…

The study also indicates that there is a difference in the way business interacts with government based on the size of business and its capacity to deal with government requirements. Smaller businesses are more likely to use intermediary bodies such as accountants and solicitors to complete the necessary government returns and provide information to government. Medium to larger sized businesses tend to have a much wider capacity to deal with government requirements from within the organisation and as a result are less likely to rely upon intermediary bodies and have a more direct relationship with government departments.

Consequently, it is vital that, when looking to improve government services for small businesses, the role of the intermediary is understood and taken into account.

Suggestions for Improving Government Interactions

Government needs to better understand businesses and the pressures on them…

Interviews with the business representative bodies and businesses suggested that there may be a poor understanding within government departments of the environment within which businesses operate and that:

• There was a need for government to better appreciate the cycles and development stages that businesses and the economy undergo
• There was a need for government to be aware of the different pressures on business at different times of the year and that these pressures were compounded by placing a requirement to complete statutory returns within a defined timeframe and which had a penalty for late return.

If this increased understanding could be translated into a more flexible application of government regulations this, it was felt, would benefit business enormously.

Business wants easy access to information, advice and people…

The consultation indicated that there were a number of services and products which government could provide and which would benefit business. In particular businesses indicated that the following would provide the most benefit:

• Simpler and easier access to government service contracts and grants
• Easier access to legislation and supporting advice and information, including interpretation and advice on new changed regulations
• Access to information on other business and services through the provision of a business directory
• The ability to view and amend their business details held by government.

Businesses also indicated that they would benefit from the electronic provision of some of the above services. The main benefit, it was felt would be derived from solutions which would enable better sign-posting to government services such that businesses would be better able to find the right person within the right department.

…but are not concerned about electronic business registration

Services that were considered to be of least benefit to business were:

• Electronic business registration services
• Information about import and export opportunities.

…and do not want government to provide ‘commercial’ services

However, there were some concerns within the business community that government should not attempt to provide services, which would compete directly with the private sector, for example the provision of business registers, and consultancy type services.

Co-ordinating government services is seen as most important…

The primary concern of business is for genuine joined up thinking by government, which would reduce the burden on business and enable government to better understand and support them. This requires ‘behind the scenes’ co-ordination across government departments so that a business and the relationship it has with government is understood.

Business Sensitivities to data sharing between Government Departments

Businesses are happy to provide basic business data once only to government…

Businesses were generally happy for core ‘standing’ and accounting data (such as business contact details, addresses, number of employees and turnover) to be shared between government departments.

…but have concerns about sharing of sensitive data and increased ‘policing’…

Businesses were unhappy about departments having access to or sharing data that was commercially sensitive.

Use of Unique Identifiers

A unique business identifier would have limited direct benefit for businesses…

The study indicates that:

• Businesses would support the use of unique business identifiers as long as it can be demonstrated that it would make it easier to deal with government
• The direct benefits to business are not clear, and it is unlikely to reduce the number of business numbers that have to be maintained.
• Business intermediaries who provide services on behalf of a number of businesses and have more interactions with government are more likely to benefit from the use of unique business identifiers.

The implication is that a unique business identifier would assist in providing a more co-ordinated approach to business interaction but not in all cases.

Future Means of Communication

A wide range of means of communication with government will continue to be needed…

The consultation indicates that although there is increasing access to a range of communication facilities, their use varies. It is also evident that business continues to value and use traditional means of communication such as fax, post and telephone. This would suggest that there is a need for government to provide a choice of means of access to government and the services it provides.

Businesses also indicated that government needed to recognise that business may wish to interact with government in different ways dependent on the nature of the transaction. Simpler means of interaction, perhaps electronic, would be beneficial for routine matters and face-to-face and telephone contact for more complicated matters.

The questionnaire survey closed on 16th July.

The process of consulting with the business community does not stop with the production of this report. The project web-site will continue to operate. Information about the Study’s progress is posted on the site and you may provide feedback on the study using the "feedback" option. Your comments will be captured and channelled to the appropriate Business Information in Government project managers.

Indeed, the continued participation and support of the business community is essential to the success of the Business Information in Government Study and is actively encouraged.

The BIIG Vision

In the study businesses indicated that three methods of on-line interaction with government sources would be of interest. They are:

• One-to-one secure transactions between a business and a government department or agency
• Anonymous access via the Internet to public information and references across government sources
• Where appropriate the combination of both types depending on the sensitivity or nature of the communication.

One-to-One Transactions

Within a one-to-one transaction, the use of on-line electronic forms can offer benefits to both the business, and the government body. However, any business that chooses to perform on-line transactions with a government source will only do so if they are 100% confident that the communication channel is safe and secure. The technology to enable such transactions has been available for some time, and is starting to become a familiar service provided by retail establishments and high street banks.

There are two techniques available that when combined ensure communications are secure.

1) Secure communication through encryption...

2) Identification and authentication...

HM Customs and Excise have an on-line VAT return form.

Anonymous Internet Access

There are numerous government-related information sources currently available via the Internet. The Government Information Service provides a good search facility for general enquiries, however the needs of a business user will often be different than that of an individual.

This example supports three typical requests or queries that may come from a business looking for information from within government sources:

• A specific question, for example, "Legislation regarding the recycling of material produced as a by-product from a manufacturing process". In this case, the use of the keyword "recycling" with the business sector "manufacturing" and the specific information request for "Legislation" would present relevant material
• Information regarding a more general question within a business area. Here a simple search could be performed, or the links provided from the "Business Advice" section could be used
• General business information or advice. The "Starting a Business" routemap or a simple search would provide a business or individual with relevant contacts, links and references.

To test how each of these works please view the demonstration model at www.statistics.gov.uk/businfo/gateway.htm.

A Combination of One-to-One and Anonymous Interaction

This would be applicable within a "workflow" scenario where a business may need to communicate with a number of different parties in order to complete a process. The nature of the process may dictate the communication method with each party. For example, legislation dictated by the Inland Revenue may require some supplementary information from HM Customs and Excise. The Inland Revenue process may require a secure transaction, while the information requested from Customs and Excise may be non-sensitive and obtained through traditional Internet access. A successful workflow process requires such interaction to appear seamless to the user.

To take part or to find out more about the project as it progresses please make contact via the following:

Study Web site: www.statistics.gov.uk/businfo
E-mail: CBD@ONS.GOV.UK
Telephone enquiry line: 01633 813289