The government has produced an extremely disappointing response to the House of Lords Personal Internet Security report published in August.
The government has completely rejected the report's far-seeing recommendation that liability redistribution is the key to Internet security. The Lords were convinced that allocating some liability to financial services institutions, ISPs and software vendors would drive an increase in the security of Internet-related products and services. The government's response is to sniff that additional burdens cannot be imposed on business. This is short-sighted to say the least.
The government has also rejected advice that the Research Councils should fund significant new security work or a new centre of expertise between universities; that "kite marks" indicating a basic level of security in Internet-related products and services should be encouraged; or even that growing levels of fraud are significantly damaging people's trust in the Internet.
I've been doing quite a bit of work over the summer on e-crime. It is quite amazing just how quickly serious criminals are developing in their use of the Internet for fraud. I had high hopes the UK might lead the world in a long-term response to this problem. Instead it seems the government prefers to stick its head in the sand and hope the problem will go away of its own accord.
UPDATE: The Lords' special advisor isn't impressed.