{"id":24382,"date":"2020-10-15T08:38:36","date_gmt":"2020-10-15T07:38:36","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=24382"},"modified":"2020-10-15T08:40:25","modified_gmt":"2020-10-15T07:40:25","slug":"oecd-calls-on-uk-to-invest-in-broadband-or-risk-covid19-scars","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2020\/10\/oecd-calls-on-uk-to-invest-in-broadband-or-risk-covid19-scars.html","title":{"rendered":"OECD Calls on UK to Invest in Broadband or Risk COVID19 Scars"},"content":{"rendered":"

The Organisation for Economic Co-operation and Development<\/a> has called on the UK to invest more into upgrading digital infrastructure (broadband and mobile) in order to help avoid the COVID-19 crisis, as well the risk of a no-deal Brexit, leaving a lasting scar on the country’s economic trajectory for years to come.<\/p>\n

At present the Government is already preparing to invest \u00a35bn<\/a> in order to help spread “gigabit-capable<\/em>” broadband across as much of the UK as possible by the end of 2025 (funding will be focused on the final 20% of hardest to reach homes and businesses). On top of that they’re also pumping another c.\u00a3500m to help improve 4G<\/a> and 5G<\/a> mobile coverage via the Shared Rural Network<\/strong><\/a> (SRN).<\/p>\n

NOTE:<\/strong> According to Ofcom<\/a>’s data (here<\/a>), some 14% of the UK is already covered by a “full fibre<\/em>” (FTTP<\/a>) network and, if we include Virgin Media<\/a>’s HFC platform, then over a quarter of premises can today access 1Gbps speeds.<\/div>\n

However, the OECD warns<\/a> that the UK’s overall public investment has been “lower than in other leading economies in recent years<\/em>“, and investment in digital infrastructure “still lags investment in transport, energy and utilities.<\/em>” These are all areas where the country lags the best-performing OECD countries and which are “likely to bring high productivity gains.<\/em>”<\/p>\n

Planned spending to improve digital skills could, says the OECD, also be “more ambitious<\/em>“, as the COVID-19<\/strong> crisis makes the “low level of adult training<\/em>” in the UK a more urgent concern.<\/p>\n

Laurence Boone, OECD Chief Economist, said:<\/strong><\/p>\n

“The combination of COVID-19 and the exit from the EU Single Market makes the UK outlook exceptionally uncertain. Actions taken to address the pandemic and decisions made on future trading relationships will have a lasting impact on the UK\u2019s economic trajectory for years to come, so they should be in line with long-term objectives.<\/p>\n

Productivity growth in service sectors will have to accelerate significantly for the recovery to be long-lasting and sustainable.”<\/p><\/blockquote>\n

As it stands the OECD warns that the UK still faces a “prolonged period of disruption to economic activity<\/em>“, which they say risks exacerbating pre-existing inequalities and regional disparities (most households have already reported a drop in income since the crisis).<\/p>\n

The organisations survey, which assumes that a smooth transition to an EU Free Trade Agreement will occur, projects an “unprecedented fall<\/em>” in GDP in 2020 of 10.1%, with activity still below its pre-crisis level by the end of 2021. The unemployment rate is projected to be 7.1% in 2021, up from 3.8% in 2019.<\/p>\n

\"OECD_UK_Economic_Outlook<\/p>\n","protected":false},"excerpt":{"rendered":"

The Organisation for Economic Co-operation and Development has called on the UK to invest more into upgrading digital infrastructure (broadband and mobile) in order to help avoid the COVID-19 crisis, as well the risk of a no-deal Brexit, leaving a lasting scar on the country’s economic trajectory for years to come.<\/p>\n","protected":false},"author":1,"featured_media":24391,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[471,38,34],"class_list":["post-24382","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-bduk","tag-politics","tag-statistics"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nOECD Calls on UK to Invest in Broadband or Risk COVID19 Scars - ISPreview UK<\/title>\n<meta name=\"description\" content=\"The Organisation for Economic Co-operation and Development has called on the UK to invest more into upgrading digital infrastructure (broadband and\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2020\/10\/oecd-calls-on-uk-to-invest-in-broadband-or-risk-covid19-scars.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"OECD Calls on UK to Invest in Broadband or Risk COVID19 Scars - 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