Hardly surprising that the UK Government are looking at this. The E-Government initiative requires that ALL services which can be made available electronically to citizens, should be made available by end 2005. Not to mention the requirements of the Freedom of Information Act (FOIA) which comes fully into force sometime in 2005 (not sure exactly when) which requires full disclosure of information held on individuals and other matters, on request.
I work in a small district council, we have identified over 1000 services, most of which will have to be supplied electronically (everything from rehousing the homeless to requesting a recycling bin). FOIA means we need to know what info we have, acres of paper, any current search would take forever.
There are nearly 500 local councils in UK all going through the same process. Essentially, we're all doing the same things but with very little co-ordination, so few economies of scale (councils tend to be very parochial - two local councils can't possibly use the same system for distributing bus passes, totally different local requirements!!!!).
The software/system suppliers are having a field day (the way things are budgeted means not just purchases but masses of consultancy too), £squillions are being made available for this.
My only surprise is that they didn't go for open source earlier.