UK Chancellor Protects Gigabit Broadband and Mobile Funding UPDATE
The UK Government’s latest Chancellor, Jeremy Hunt, has today used his Autumn Statement 2022 to, among other things, allay fears that he might cut funding for major national gigabit broadband and mobile infrastructure projects by committing to ensure that such projects remain “funded as promised“.
The Chancellor further emphasised that, despite the current climate, the country still “needs … good roads, rail, broadband and 5g infrastructure.” Ordinarily, the news of no new funding for digital infrastructure projects (beyond what has already been pledged) might be considered somewhat of a non-event, but in this climate it can be taken as good news.
As a result, we expect there will be NO cut to funding for either the £1bn Shared Rural Network project, which aims to extend geographic 4G based mobile (mobile broadband) coverage to 95% of the UK by the end of 2025 (it will help 5G too), or the £5bn Project Gigabit programme, which aims to make gigabit-capable broadband ISP networks available to at least 85% of UK premises by the end of 2025 and then “nationwide” (c.99%) by 2030.
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HM Treasury Statement
“The building of new infrastructure such as roads, train lines and communities will be safeguarded by over £600bn in capital investment over the next 5 years.
Projects like these help to grow our economy and level up regions across the UK.”
At the time of writing, the Autumn Statement is still being given in parliament, and thus we have yet to see the detailed documentation, which may reveal additional information or changes.
UPDATE 12:31pm
The full Autumn Statement 2022 document has just been published, but at first glance it doesn’t add much to what has been said above.
UPDATE 4:12pm
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Just adding the relevant piece from Hunt’s speech.
Jeremy Hunt, Chancellor, said:
“If a modern economy needs secure, clean and affordable energy, it also needs good roads, rail, broadband and 5G infrastructure. Such connections matter because they allow wealth and opportunity to spread to every corner of the country. That is why infrastructure is our second growth priority. Thanks to decisions by this Conservative Government, right now workers right across the country are building or maintaining thousands of miles of roads and railways, installing mobile masts and broadband cables to connect the remotest parts of rural Britain, building and repairing hospitals, and constructing new wind turbines in the North sea.
When looking for cuts, capital is sometimes seen as an easy option, but doing so limits not our budgets but our future. So today I can announce that I am not cutting a penny from our capital budgets in the next two years, and I am maintaining them at that level in cash terms for the following three years. That means that although we are not growing our capital budget as planned, it will still increase from £63 billion four years ago to £114 billion next year and £115 billion the year after, and will remain at that level—more than double what it was under the last Labour Government.
Smart countries build on their long-term commitments rather than discarding them, so today I confirm that because of this decision, alongside Sizewell C, we will deliver the core Northern Powerhouse Rail, HS2 to Manchester, East West Rail, the new hospitals programme and gigabit broadband roll-out. All these and more will be funded as promised, with over £600 billion of investment over the next five years to connect our country and grow our economy.”
Mark is a professional technology writer, IT consultant and computer engineer from Dorset (England), he also founded ISPreview in 1999 and enjoys analysing the latest telecoms and broadband developments. Find me on X (Twitter), Mastodon, Facebook, BlueSky, Threads.net and Linkedin.
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3.19 The government also remains committed to supporting digital infrastructure investment
through Project Gigabit, with an ambition to reach at least 85% gigabit-capable broadband
coverage by 2025 and nationwide coverage by 2030. This will ensure that every corner of
the UK can access fast and reliable gigabit-capable broadband, driving economic growth
and productivity.
“nationwide coverage by 2030” being the important bit. I don’t think the current proposed funding meets that and the 85% will be delivered despite them.
Presumably when the funding was announced this was on the basis of 2-3% (ish) inflation over the funding term. So, although the funding has not been changed, inflation has taken and will continue to take a large(r) chunk out of it for the foreseeable future.
So in summary, as inflation now exceeds 10% p/a, and no further monies are being provided, they’ll be a funding shortfall.
But neglect is okay, it’s just comms and so won’t affect national growth, surely?!
Oh dear…
Meanwhile taxes go up to pay for all this, including the HS2 which is a black hole that is now reported to nowhere near pay for itself
Dark times are ahead when the WEF is in charge of the company and raises taxes during a recession, and the opposition argues taxes are not high enough. More taxes, more spending, more socialist handouts and some people call the tories as right wing when they’ve gone full socialist
I don’t really care if you think corbyn would made us poorer BS again as you been to many the sun the mirror daily fail torygraph or that Andrew I talk BS for the tories peace.
You should of voted Labour last election under corbyn 2019 as I and many others who still thinks corbyn would of end austerity food banks and scrap universal credit as its a complete failure like brexit even though Labour lost at the last election through brainwashing the public thinking corbyn was a security risk again BS by the tories and Rupert murdock news papers saying he was .
I don’t want starmer as PM next election as he’s a tory just like sunak.
Yes I know you can’t vote for a pm only a local mp in your local constituent mp .
#starmerout he’s a red tory
He’s a tory in a red tie .
A liar a coward and a traitor to the working class and I watch audery white who got kicked out of Labour member party due to confronting the useless tory mark 2.0 in a red tie in Liverpool last Labour conference in Liverpool.
Get Jeremy corbyn back in other Labour lose next elections
Golly did we all run out of things to say about gigabit Britain!?
The reality is that deployment costs have dropped quite a bit as things have got markedly more efficient.
I’ve just had a price list from a well known Swedish manufacturer of cutting equipment and 2023 list prices are down on October 2022 by a few %.
Similarly in the supermarket when things got all Trussed up a little while back tomatoe punnets got very small and very expensive. Now the price is the same but there are more tomatoes again.
Shipping costs from the far east are 1/4 – 1/3 of what they were at peak……
Conclusion – some inflation is already heading downwards.