Tony Blair yesterday moved to improve the government's performance in the provision of online services to businesses and voters in precisely the way it constantly urges them to embrace the new information technologies.

After yesterday's discussion in an "information age" cabinet about Whitehall's progress after a somewhat slow start, Mr Blair announced that the government will try to offer all services on a 24-hour, online basis by 2005 instead of 2008, as originally proposed.

"I want the UK to be the world's leading internet economy," said Mr Blair yesterday, after briefing cabinet colleagues on the move.

"Businesses and individuals throughout Britain are responding to this challenge, getting the UK online. I am determined that government should play its part, so I am bringing forward our target for getting all government services online," he said.

At a special summit in Lisbon last week European Union leaders agreed on strategies to help Europe catch up on the United State's daunting lead in e-business. This is Labour's first contribution.

The target, agreed with the e-minister, Patricia Hewitt, and Ian McCartney, the minister for e-government, will be to put all government services - now to use the new "UK Online" logo - on the internet through PCs, telephone and digital television by 2005.

It is an ambitious goal, officials admit, and will include applications for drivers licences and passports.

Services already online include NHS Direct, Companies House and the Number 10 website - on which the press secretary's daily briefing is visited far more often than the prime minister's own, more formal offerings.

Other services due to join them include tax returns - with discounts of up to £110 for small businesses who e-file their returns - vehicle excise duty and VAT registrations and the the small business advice service.

The prime minister himself has been slow to use the new technolgies - although he is having lessons. Ministers, however, still cannot easily talk to other departments, let alone exchange email with other ministers through the Whitehall network.

Yesterday Mr Blair said: "It is a challenging target which will require more joined-up working between departments, less reliance on paper trails and the development of new ways of working.

"But it is one we have to meet if our UK online strategy is to succeed."