The United Kingdom Meets E-Commerce
Some 13 million Britons have Internet access. Over 80 percent of companies in the United Kingdom have Web sites, with 35 percent of these selling merchandise on-line. The country has world-class telecommunications firms, leads the world in mobile telecommunications technology, and obviously uses English, the universal language of the Web. Surprisingly, the United Kingdom still lags behind the United States, Canada, and Australia in both business and consumer e-commerce use. Clearly, there is room for improvement.

Blair Sets New Goals
Acutely aware of the enormous challenges and opportunities of e-commerce, Prime Minister Tony Blair has identified the following ambitious goals for e-commerce: overcoming inertia among businesses not yet switched on to the Internet; making improvements in electronic service delivery and procurement; and maximizing coordination between government and industry in meeting these goals.

This initiative is intended to transform the United Kingdom into the best environment in the world for e-commerce. Given an educated population with a highly motivated work force, a strong technology base, and a business-friendly tax structure, this burgeoning market shows great promise for offshore investors. In today’s England, the “e” definitely stands for e-commerce.

Business Customs
Some fundamental cultural differences between the U.S. and the U.K. remain. Variations in pace and style may be most noticeable, and sustained personal contact with potential business partners is expected. Prompt acknowledgment of correspondence, adherence to appointment schedules, and a greater formality in the conduct of business is the norm.

British executives communicate more by letter and fax than by telephone, although the Internet is widely used, and e-mail is becoming more common. The British are less likely to seek legal advice and guidance than their U.S. counterparts, although a litigious culture is developing along the lines of the U.S. model.

Handshaking is customary when introduced to someone for the first time. Normal social courtesies should be observed when visiting someone’s home and a small present such as flowers or chocolates are appreciated.

In hotels, a service charge of 10 to 12 percent is usual, which may be added to the bill. Ten to 15 percent is usual for restaurants, and it too is often added to the bill, in which case a further tip is not required. Ten to 15 percent is also usual for taxi drivers and hairdressers, but this is not included in the bill.

There is no legal requirement to pay service charges that have been added to bills, and if the service has been unsatisfactory, the customer may deduct it. Travelers should remember, however, that U.K. wages for catering staff are set at deliberately low levels in the expectation that tips will make up the difference.

Business people are generally expected to dress smartly (suits are the norm).

Appointments should be made, and the exchange of business cards is customary.

Normal business office hours: 9:00/9:30 a.m. to 5:00/5:30 p.m., Monday to Friday.

Web Resources

Embassies and Consulates
www.britainusa.com
Official Web site of the British embassy and consular offices in the United States. Answers questions most frequently asked in the United States about the United Kingdom and provides up-to-date government comment on current events.

www.usembassy.org.uk
Official Web site of the U.S. embassy in London. Contains many useful links, including State Department background notes on the United Kingdom (basic statistics, U.S.-U.K. relations, U.K. government and politics), the latest Country Commercial Guide (which examines the country’s commercial environment), the British Tourist Authority (BTA), and the Commercial Service of the U.S. Department of Commerce.

Statistics and Finance
www.statistics.gov.uk
Provides the latest official U.K. statistics, recently released publications, and press releases.

Treasury and Customs
www.hm-treasury.gov.uk
Site of the U.K. Treasury. Contains information on the United Kingdom’s financial situation, including independent forecasts and general economic indicators.

www.hmce.gov.uk
U.K. Customs and Excise. Provides detailed information and advice on customs requirements and VAT matters for businesses and the general public. Also provides customer service contacts for additional inquiries.

Travel and News
http://travel.state.gov
Official Web site of the Bureau of Consular Affairs, U.S. Department of State. Offers a wealth of information for U.S. citizens overseas. Links include travel and living abroad, countries and regions, international affairs, history, education and culture, and business resources.

http://news.ft.com/home/uk
The U.K. home page of the Financial Times.

www.iht.com
Site of the International Herald Tribune.

Other Useful Sites
www.britishchambers.org.uk
The British Chambers of Commerce site provides information about business opportunities in the United Kingdom.

www.msi-network.com/content/doing_business_in_uk_page2.asp
Doing Business in UK — Information for small to medium-sized business. Various topics on doing business in the U.K. are covered on this comprehensive Web site, including business culture, legal considerations, and taxation.

www.europeaninternet.com/uk
Internet news feeds about the United Kingdom.

www.itds.treas.gov/UK.html
U.S. Treasury Department’s links and resources for the United Kingdom.