The Welsh Government (WG) has confirmed that its top-up funding for the Gigabit Broadband Voucher Scheme (GBVS), which offers grants to help rural homes install gigabit-capable internet connections, will end on 31st March 2022 because “budget pressures” mean they can no longer afford to continue to “underwrite the UK Government“.
The UK GBVS scheme normally offers vouchers worth up to £1,500 for homes or £3,000 for businesses to help them get a gigabit-capable broadband (1000Mbps) service installed, which in Wales is available to areas with broadband speeds of less than 30Mbps available (assuming there are also no near-term plans for a gigabit deployment in the same area).
However, for a while now the WG has – much like various other local authorities across the UK – been using some of their own budget to “top-up” these vouchers, which doubles their value (i.e. up to £3,000 for homes and £7,000 for businesses). The advantage of bigger vouchers is that you can fund deployments into the hardest to reach rural areas, where the cost of build would have exceeded what the original vouchers could cover.
The GBVS was originally due to end last March, but it was extended with an additional investment of £210m under the new £5bn Project Gigabit scheme. The WG also agreed to continue providing top-up funding for this, which we’re told has directly supported over 1,300 additional premises (homes and businesses) to get connected. But that top-up is about to end.
Lee Waters MS, Deputy Minister for Climate Change, said:
“In the face of continued budget pressures, we cannot continue to underwrite the UK Government who have the responsibility for this area. Therefore, the top-up will cease on 31 March 2022. The volume of funds provided under the top-up across the UK suggests that the upper cost threshold of the scheme should be reviewed by the UK Government to reflect the cost of deploying gigabit broadband in rural and remote areas. I have written to, and have met with, the Minister of State at the Department for Digital, Culture, Media and Sport to emphasise this point.
The scheme was shortly due to be paused in Wales as procurements for Project Gigabit began, but applications for vouchers received before the cessation date that meet the scheme’s criteria will still be eligible for top-up funding. On Project Gigabit, we are pressing the UK Government to ensure that Wales gets its share of the £5 billion of investment for the needs of homes and businesses in Wales. Discussions are ongoing about how it will be delivered and the role of the Welsh Government.
The digital infrastructure landscape has changed since Brexit. We no longer have access to EU funding and, because it is non-devolved, we now rely solely on UK Government funding to improve broadband in Wales. We remain committed to working with Whitehall to secure the best outcomes for Wales and to make a strong case for continued investment to reach the hardest to reach communities, to make sure that they are not left behind. I’m pleased to say that we do have good relationships with both officials and Ministers, but we do need a change of heart regarding the failures of the market and the role of Government.”
The vouchers themselves will continue to be available, albeit at the original (lower) values, which is unlikely to change unless the UK Government allocates more funding to give them a boost. But right now, the Building Delivery UK team are busy working on the procurements for Project Gigabit’s gap-funded delivery contracts, which in Wales has provisionally identified 234,000 premises that may be in-scope of future upgrades (here).
Meanwhile, the WG are preparing to publish a new iteration of their digital delivery plan, which will detail the next steps on their journey towards Wales becoming “truly digital.”
What is ‘truly digital’?
My guess would be they mean something akin to universal gigabit broadband coverage, with mobile close behind.
Could be as simple as paying your rates online, submitting planning applications, etc