Telecommunications Infrastructure (Relief from Non-Domestic Rates) Bill
(Limited Text - Ministerial Extracts only)
Read Full debateMonday 10th July 2017
(7 years, 4 months ago)
Commons ChamberTelecommunications Infrastructure (Relief from Non-Domestic Rates) Act 2018 Read Hansard Text
This text is a record of ministerial contributions to a debate held as part of the Telecommunications Infrastructure (Relief from Non-Domestic Rates) Act 2018 passage through Parliament.
In 1993, the House of Lords Pepper vs. Hart decision provided that statements made by Government Ministers may be taken as illustrative of legislative intent as to the interpretation of law.
This extract highlights statements made by Government Ministers along with contextual remarks by other members. The full debate can be read here
This information is provided by Parallel Parliament and does not comprise part of the offical record
The Minister for Digital (Matt Hancock)
I beg to move, That the Bill be now read a Second time.
Everyone in the House knows the importance of being connected, whether through traditional means or, increasingly, through digital connections. Whether the issue is the next generation of broadband technology, better mobile phone coverage or preparing for the next generation of 5G, the Bill is all about improved connectivity. Whether we are talking about fixed networks in the ground or the next generation of mobile and wireless connectivity, what people care about is how well connected they are—good download and upload speeds, reliability, latency, and how quickly they get reconnected when there is a problem. It is a problem that we can all identify with, Madam Deputy Speaker. May I say what a great pleasure it is to see you in the Chair for the first time from the Dispatch Box, Dame Rosie?
Our task is to prepare for a world of considerably greater demand for digital connectivity. Just as Moore’s law states that the cost of computing halves each year, Nielsen’s law has seen the doubling of data demands every two years. World-class connectivity is important for people to function in the modern world, whether at work or at play. It will continue to transform our public services and bring efficiencies there, too, and it is important for all sectors in our economy. The challenge is always to stay a step ahead of need. We need the digital infrastructure that can support that, providing ubiquitous coverage so that no one is left out, and sufficient capacity to ensure that data can flow at volume and with speed and reliability to meet the demands of modern life.
All these connections rely on Britain laying more fibre-optic cable. Whether fibre all the way to the premise—to each home and business—or the fibre that underpins the mobile network, all modern connectivity runs off fibre. Around five years ago, the nation took a strategic decision to roll out high-speed broadband based largely on a part-fibre, part-copper network. Superfast broadband delivered in that way is today available to 93% of UK homes and businesses. We rank first among the big European states for superfast connections, and we are on track to reach 95% by the end of this year.
In mentioning that, may I pay tribute to my right hon. Friend the Member for Wantage (Mr Vaizey)? He did so much—he never lets me forget how much—to deliver the first-rate, high-quality superfast broadband connectivity to homes and businesses around the country that now allows us to say that 93% of people have access to, but do not necessarily take up, superfast broadband.
Catherine West (Hornsey and Wood Green) (Lab)
I thank the right hon. Gentleman for being so quick to take an intervention. May I suggest that he is being a little Panglossian and positive in his approach? As constituency MPs, we receive quite a number of complaints, and yet the grin on his face suggests quite the opposite.
Matt Hancock
That was me talking about what we have done so far—just wait until I talk about what we need to do in the future. I strongly agree with the hon. Lady that we need to do much more, which is what the bulk of my speech is all about. Indeed, it is what the Bill is all about. If she holds the view she espouses, I look forward to her marching through the Division Lobby later in support.
Precisely on the point raised by the hon. Lady, of course 7% of premises do not yet have access to superfast connections, so we are introducing the new broadband universal service obligation so that, by 2020, everyone has access to a minimum level of service. That will provide a vital safety net and ensure that nobody is left behind as the country takes these strides towards better connectivity.
Yet even this is not enough. Demand marches on. People’s needs and expectations have risen further, and will continue to rise. Yes, we need to celebrate what we have done so far, but we must also deliver deeper connectivity, now and in the future, to support a competitive market and to ensure that we get this infrastructure in the ground. We must work now to deliver the next generation of technologies, 5G and fibre over the decades ahead. This Bill is part of a suite of actions we are taking to boost Britain’s fibre. We will break down barriers to better broadband for business and get quicker connectivity for consumers.
First, in the Digital Economy Act 2017 we reformed the electronic communications code, which regulates agreements between people who provide sites and the digital communication operators. That new code will make it easier for electronic communications infrastructure to be deployed, maintained and upgraded. We are currently finalising the regulations needed to support the new code, which we plan to commence later this year when the work has been completed.
Secondly, with the separation of Openreach from BT we will see a more competitive market, with an Openreach that serves all customers well, rather than just focusing on BT. That decision has been largely welcomed by BT’s competitors and is the result of intense negotiations between Ofcom and BT. It is the right outcome and will ensure that Openreach delivers not just for its customers but for the whole country.
Thirdly, we are supporting the fibre roll-out through a £400 million digital infrastructure investment fund to help competitors in the market to reach scale and to deliver. The fund will improve access to commercial finance for alternative developers for full fibre infrastructure, helping them to accelerate roll-out plans and compete with the larger players.
Sir Desmond Swayne (New Forest West) (Con)
Will that assist those areas, of which there seem to be a great number in my constituency, where one part of, say, a market town or a small village has had its box upgraded by BT but users who are a few yards further away from the box, requiring longer reaches of copper wire, cannot get a decent service?
Matt Hancock
It may well help, but the universal service obligation is the thing that will really help those people, because it means everybody will have a right to a high-speed broadband connection. Some of those connections will be delivered by the next-generation full fibre connectivity and some of them by the existing technology, but our whole package of measures to deliver better broadband and quicker connectivity will ensure that we reach those people who, frustratingly, can be just a few yards further away from a box—or, indeed, who see the fibre go down in the road in front of their premises—but who do not have a connection.
Rebecca Pow (Taunton Deane) (Con)
I welcome the Bill, which is essential for moving the country forward and making our businesses as strong as possible, but even in the centre of Taunton Deane and the county town of Taunton there are areas where people still cannot get fast broadband. Will the Minister tell them how quickly they might be able to take advantage of this new service?
Matt Hancock
The universal service obligation is in law to ensure that everybody can access the service by 2020, but that is an end date, a deadline. As I said earlier, we have now reached 93% of premises. Crucially, that is 93% of premises having access to broadband—they still have to take it up. In fact, everybody who takes up the service in a subsidised area puts more money into the pot so that we can give more people access to superfast broadband.
Just 42% of the country had superfast broadband in 2010, when my right hon. Friend the Member for Wantage took up the reins of delivering it, but now 93% have access to it. We are on track to get to 95% at the end of the year, and then 100% of premises will have access to high-speed broadband by 2020. As my hon. Friend the Member for Taunton Deane (Rebecca Pow) can see, we are rolling that out. Crucially, that is delivering today’s technology—it delivers the needs of an average household today—but we also need to make sure we are ahead of the curve on the next generation of technology.
The idea of the digital investment fund is that it supports the commercial finance of alternative developers so we get more players into the market, rather than just having BT and Virgin, the two big players. The Government’s investment will be at least matched on the same terms by private sector investments so we expect it to capitalise more private investment and bring more than £1 billion of investment overall into full-fibre broadband, getting the really high speeds that some people need and want now, but many, many more will need and want in the future as these demands increase.
Kit Malthouse (North West Hampshire) (Con)
I want to refer back to the Minister’s remarks on the universal service obligation, which of course he is right to hail as a revolution in provision. The USO will be subject to a cost cap, so I wonder whether he will tell us when our constituents are likely to know what that cap is going to be and therefore whether he will be burnishing his credentials as a hero of rural Britain or not.
Matt Hancock
I know when to take a compliment as a threat. The truth is that this all depends on the technology. It may cost an awful lot to dig a trench and get a piece of fibre all the way to some places a long way from the existing network. However, new technologies are coming on stream, especially fixed wireless technologies, where a signal is beamed from one place to another. As a last resort, there are satellite technologies, which are good but not as reliable, that mean everyone can get connected. The aim is to get decent broadband speeds to every premises that wants them, making sure that as much of that as is feasibly possible is covered by a fixed network, but using technologies to get to the hardest to reach.
Michael Tomlinson (Mid Dorset and North Poole) (Con)
I am grateful to the Minister for confirming that 100% of properties will have access to this by 2020, but will he confirm what speeds they will have access to? At the moment, there is a range of 2 megabits per second for the universal service and 24 megabits per second and more for the superfast service. What range of speeds is he talking about when he refers to 100%?
Matt Hancock
We have said 10 megabits per second as a minimum, and that is Ofcom’s analysis of the needs of the average household today; this is about making sure there is a service everybody can use. As we ask people to pay their taxes, get their passports or do their rural payments service applications online, it is a perfectly reasonable request back to us in government that people should have a decent level of broadband. If people want the really tip-top level, they may have to pay more for it, and that is not unreasonable either. We are saying that there must be a decent level of high-speed broadband. At the moment, we have said 10 megabits per second as a minimum, but we have also said that that has to be reviewed in an upwards direction in due course.
Richard Benyon (Newbury) (Con)
I speak as someone whose constituency is one big roadworks, where a company called Gigaclear delivers fibre to premises, which is welcomed by people in even quite remote communities.
Will the Minister help us with concerns we might have about his discussions with the Valuation Office Agency, which, in my experience, seems not to understand the way the world is? At the click of a VOA bureaucrat’s mouse, the finances of a local unitary authority such as West Berkshire Council can be radically altered in terms of how networks are business rated.
Matt Hancock
I can tell my right hon. Friend two things. The first is that we are committed to a business rates review to look at these sorts of things for fibre currently in the ground; I am sure the Secretary of State for Communities and Local Government and the Under-Secretary of State for Communities and Local Government, my hon. Friend the Member for Nuneaton (Mr Jones), who are here on the Bench, will have heard what he has said.
The second thing is that at the heart of this Bill is making sure that new fibre that goes into the ground will have no such rates at all for the next five years, which is why we are here legislating today; we are making sure that companies such as the one he mentioned can get on and deliver this fibre, digging it in the ground as efficiently and cheaply as is reasonably possible, and we reduce the tax on that.
The fourth reason why fibre is important is for implementing our 5G strategy, including exploring commercial options to improve mobile coverage on our roads and rail networks, because we want mobile phone coverage where people live, work and travel. We are working with Ofcom to make sure that UK regulations on spectrum and infrastructure are 5G ready. We are working across Government with the Department for Transport and the Department for Communities and Local Government to make sure that we get right the rules on putting the infrastructure in place. We are also supporting 5G pilots, the first of which we will roll out next year, making Britain a global leader in 5G. All 5G roll-out is supported by fibre—there cannot be a 5G mast without the fibre that connects it to the network.
Fifthly, our £200 million local full-fibre networks programme is about supporting local bodies to stimulate the market for fibre connectivity in their areas. Fibre cannot be delivered by some sort of entirely nationalised, top-down, taxpayer-funded system; it has to be done in collaboration with the private sector. The local full-fibre networks programme is being delivered in support of local bodies to encourage the market to provide more fibre connectivity. For example, public sector anchor tenancies will bring together public sector broadband demand in an area to create an anchor customer, thereby making sure that investors know there is enough revenue to reduce the risk of building a new network. Such networks will connect directly into public sector buildings such as schools and hospitals. At the same time, they will improve connectivity for those who work in our vital public services and bring fibre closer to more homes and businesses, allowing them to be connected, too. The first wave of projects will begin later in the year. This is a great example of the public and private sectors working together to improve connectivity for all.
Sixthly, our business broadband fibre connection vouchers are incredibly exciting for people like me who are frustrated at the poor quality of broadband being delivered to businesses. In the previous Parliament, we had a really effective voucher scheme for superfast broadband for businesses. The new vouchers will be trialled by the end of the year and will be for full-fibre connections for businesses. The scheme will be rolled out more widely in 2018 to help businesses to get the best fibre broadband, because we know that so many jobs and so much business growth depends on it.
The Bill takes a further step. Business rates are an important source of revenue for local services, but have long been cited as a barrier to investment by the telecoms sector. There has been consternation—as articulated by my right hon. Friend the Member for Newbury (Richard Benyon)—at how the rates have been calculated. There was a perception of a disparity or lack of fairness between the rates paid by some operators, such as BT and Virgin Media, and smaller alternative networks such as CityFibre and Gigaclear. The rating methodology is of course a matter for the independent VOA, which has been working on this issue with the sector, but it is complex work and we do not have a moment to waste.
We recognise the urgent need to go the extra mile, so in last year’s autumn statement my right hon. Friend the Chancellor announced a 100% rate relief for all new fibre networks for five years from April 2017, with any relief backdated to that date. We will fund and fuel a full-fibre future, and we have introduced this Bill early in the Parliament to bring forward the legislative changes required to make that happen. The Bill will introduce new rules into each provision for business rates to allow us to vary the rates bill for telecommunication infrastructure, which will be set so that no rates are paid on new fibre for five years from the April just gone.
Wendy Morton (Aldridge-Brownhills) (Con)
Does the Minister think the five-year period for business rates relief will be sufficient to incentivise the market players to get on and roll out fibre broadband? Will he try to ensure that as they do that we get coverage throughout the country and they do not just start in the easy-to-reach areas first?
Matt Hancock
First, there is no doubt that the five-year business rates holiday shows that we are reducing the cost of getting fibre into the ground. Secondly, it is time limited, so my message to alternative providers, as well as the big players, is to get on with it and make use of the relief while it is available. Thirdly, it gives us time for the business rates review and the VOA to look at the complexities over a reasonable period and come forward with a long-term, sustainable scheme. Sixthly—fourthly? I cannot remember which point I was up to, but I am sure that Hansard will make this bit sound really eloquent. I have completely lost my train of thought!
The final thing I was going to say is that the five-year business rates holiday will also give us the opportunity to decide, towards its end, whether five years has been long enough and whether we want to extend it. The fact that it is a five-year period demonstrates that providers should get on with it. I assure my hon. Friend the Member for Aldridge-Brownhills (Wendy Morton) that it will be no shorter than five years, and I am grateful for her intervention because it allowed me to get completely confused with my own points.
In total, our efforts are part of measures worth £1.1 billion to support the market-led roll-out of fibre broadband and ensure that we are at the front of the 5G queue. There is still a lot more work to be done, and we will consult shortly on the technical details of implementation. The relief will reduce the costs of deployment, thereby incentivising the market to deliver where it otherwise would not have. I hope that, in the spirit of cross-party collaboration, the Bill will get the support of Government and Opposition Members, as it will benefit people right across the United Kingdom. We want to see a country in which people are better connected and everyone can get online and reach their full potential, and to make sure that nobody is left behind. The Bill provides a step on that journey, and I commend it to the House.
Andrew Gwynne
No, I have given way once to the hon. Lady, I will not do so again.
There is a further omission in this Bill—the exclusion of any real and meaningful legislative commitments on growing rural broadband. I am worried that there appears to be absolutely no mention in the body of the Bill or the explanatory notes of growing and expanding the UK’s superfast broadband in our rural areas, although the Minister touched on it and I think there is some consensus about its desirability.
Let me give a short anecdote. Last year, I was privileged to be in a delegation to Zambia for the Inter-Parliamentary Union Assembly. In the middle of Africa, in the middle of nowhere, on a visit to a health scheme near the Zambezi river, I received an almost-perfect 4G connection to my mobile phone. There are parts of my constituency where I do not get such a perfect 4G connection. We need to look at our internet connections, broadband connections and mobile telephone connections in this country so that we have the very best to support business, consumers and individuals.
As I am sure the Minister is aware, many families living in rural areas struggle to get anything close to fast broadband, let alone 5G, which is what we are discussing today. Many others struggle to get anything above 2 megabits per second, making most average use of day-to-day internet functions incredibly frustrating. The impact on rural businesses is steep, with the Select Committee on Environment, Food and Rural Affairs warning before the 2015 general election that rural communities are being overlooked for potential investment by businesses looking to expand and develop because certain regions have very poor digital connectivity. The then Chair of the Committee, the former Member for Thirsk and Malton, said:
“There is a risk in the current approach that improving service for those who already have it will leave even further behind those who have little or none.”
Rather than taking responsibility for this ever-growing chasm in our technology and identifying specific areas that desperately need investment, the Government have chosen to rely solely on the market to encourage improvements in any given area.
Matt Hancock
That is not the case. The Digital Economy Act 2017, which was the last Bill passed in the previous Parliament, gives us the power to require a universal service obligation so as to get high-speed broadband to everybody.
Andrew Gwynne
Well—[Interruption.] Exactly. As my hon. Friend the Member for Oldham West and Royton says, the Minister should share that with his Back Benchers. In all parts of the House, there is growing dissatisfaction with some rural broadband connectivity, its impact not just on consumers but on businesses, and the slow pace of improvement. It is clear that the Government ought perhaps to use their powers to ensure that those improvements happen, because it is a massive frustration for those communities and businesses—I see him nodding his head in agreement.
Telecommunications Infrastructure (Relief from Non-Domestic Rates) Bill
(Limited Text - Ministerial Extracts only)
Read Full debateTuesday 5th September 2017
(7 years, 2 months ago)
Commons ChamberTelecommunications Infrastructure (Relief from Non-Domestic Rates) Act 2018 Read Hansard Text Amendment Paper: Committee of the Whole House Amendments as at 5 September 2017 - (5 Sep 2017)
This text is a record of ministerial contributions to a debate held as part of the Telecommunications Infrastructure (Relief from Non-Domestic Rates) Act 2018 passage through Parliament.
In 1993, the House of Lords Pepper vs. Hart decision provided that statements made by Government Ministers may be taken as illustrative of legislative intent as to the interpretation of law.
This extract highlights statements made by Government Ministers along with contextual remarks by other members. The full debate can be read here
This information is provided by Parallel Parliament and does not comprise part of the offical record
Madam Deputy Speaker
The appropriate consent motion has been tabled. Does a Minister intend to move the consent motion?
Stuart Andrew (Pudsey) (Con)
indicated assent.
The House forthwith resolved itself into the Legislative Grand Committee (England and Wales) (Standing Order No. 83M).
[Mrs Eleanor Laing in the Chair]
The First Deputy Chairman of Ways and Means (Mrs Eleanor Laing)
I remind hon. Members that, if there is a Division, only Members representing constituencies in England and Wales may vote on the consent motion for England and Wales.
Motion made, and Question proposed,
That the Committee consents to the following certified clauses of the Telecommunications Infrastructure (Relief from Non-Domestic Rates) Bill:
Clauses certified under Standing Order No. 83J as relating exclusively to England and Wales and being within devolved legislative competence
Clauses 1, 2 and 5 of the Bill (Bill 3).—(Mr Marcus Jones.)
The Minister for Digital (Matt Hancock)
I beg to move, That the Bill be now read the Third time.
The Bill is part of a wide-ranging strategy to deliver world-class connectivity for our country. That, in turn, is part of our work and commitment to build a country that works for everyone and is fit for a modern age. Whether it is basic broadband over copper, world-class connectivity over fibre or continuous coverage through the air, it is part of what we could call a full-spectrum strategy.
The Bill provides vital support for the vision of full-fibre connectivity. Growing the fibre network beneath our streets and along our roads and railways is like growing a tree. The trunk links our great cities and connects Britain to the world, and we are growing the great boughs and branches to power ever wider mobile signal and reach every community. We are increasingly growing out fibre not just in the trunk or the boughs but in the multitude of small branches and twigs. It is increasingly going to people’s houses and to each business, and to all the public services of the land. The fibre network needs nourishment—it is as yet a sapling, and as increasing demands are put on it, it will be under greater strain, so we must ensure that it is strong enough to deliver.
I thank all right hon. and hon. Members who have contributed to the Bill, including those who gave it full support on Second Reading and highlighted the contribution that it would make to furthering our ambitions to deliver world-class digital infrastructure. They were absolutely right to make that point. I am grateful to the Clerks of the House, the Bill team in the Department for Communities and Local Government and my brilliant team in the Department for Digital, Culture, Media and Sport. I am also grateful to our partners in the telecoms industry, with whom we have worked on getting the Bill right. I look forward to their responses to the technical implementation consultation published last week. I would very much like to thank the Under-Secretary of State for Communities and Local Government, my hon. Friend the Member for Nuneaton (Mr Jones), for steering the Bill through the House. The debates in Committee were fruitful, with the degree of support for the Bill being evident and strong.
The Bill will provide 100% business rates relief for five years for new fibre installed after April 2017. To get the details right, we will of course listen carefully to the responses to the consultation on the regulations—it is not on the policy or who the relief should apply to but on making sure that the technical details operate effectively. Especially given the Bill’s smooth passage through the House, we hope that it will be in force very soon to incentivise the deployment of more fibre and support our efforts to get world-class digital infrastructure.
To build on that, we want to create an attractive environment for the private sector to provide fibre. We are already seeing significant investment by operators across the country, including the new and growing altnets such as CityFibre, Gigaclear and Hyperoptic as well as Openreach and Virgin Media. That is supported by the Independent Networks Cooperative Association and others. I commend all of them for their work in the national interest. Business rates relief for new fibre will reduce the costs of deployment for those operators and incentivise the market to deliver where it otherwise may not have done. It is all part of ensuring that we can deliver the infrastructure that this country needs.
As I said, that is part of a broader plan. In July, we announced a £400 million investment fund to provide finance for network providers by matching their fibre investments. Over the summer we announced details of our universal service obligation so that every household will get decent broadband by 2020, and we recently announced further details of £200 million of support for getting full fibre to local bodies, schools, hospitals and other public services to help them to deliver their services more effectively and ensure that the branches of fibre are rolled out more broadly. We continue to extend superfast broadband coverage over the copper network. Over 93% of UK premises have been covered to date and we are on target to reach 95% by the end of the year. Mobile coverage is on track to reach 90% of the landmass by the end of the year and we want to see 95% coverage in future.
The Bill is proof of our commitment to connectivity and our determination to deliver digital infrastructure that the country deserves. It has wide support, it has been considered in detail and it will help us to build a modern Britain. I commend it to the House.
Telecommunications Infrastructure (Relief from Non-Domestic Rates) Bill
(Limited Text - Ministerial Extracts only)
Read Full debateMonday 9th October 2017
(7 years, 1 month ago)
Lords ChamberTelecommunications Infrastructure (Relief from Non-Domestic Rates) Act 2018 Read Hansard Text Amendment Paper: Committee of the Whole House Amendments as at 5 September 2017 - (5 Sep 2017)
This text is a record of ministerial contributions to a debate held as part of the Telecommunications Infrastructure (Relief from Non-Domestic Rates) Act 2018 passage through Parliament.
In 1993, the House of Lords Pepper vs. Hart decision provided that statements made by Government Ministers may be taken as illustrative of legislative intent as to the interpretation of law.
This extract highlights statements made by Government Ministers along with contextual remarks by other members. The full debate can be read here
This information is provided by Parallel Parliament and does not comprise part of the offical record
The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Ashton of Hyde) (Con)
My Lords, I am very pleased to be able to assist my noble friend Lord Bourne in moving the Second Reading of this short but vital Bill.
In our modern world, businesses and individuals depend on being connected, and the ways in which this happens are becoming more and more diverse. We are fast moving beyond mere mobile phones to increasingly digital communications, and in the future this will include ultrafast broadband technology and 5G—the next generation of mobile connectivity. Fibre is crucial to both of these. The Bill will support that progression for both fixed and mobile or wireless networks by delivering a vital part of the Government’s package on fibre investment. The Bill will provide the framework to implement the Chancellor’s promise in the Autumn Statement 2016 to allow 100% business rate relief for new fibre up to 2022.
Many noble Lords have raised the problems of slow internet or poor mobile phone services. These matters are important to people. They affect the enjoyment of their lives and the success of their businesses. By delivering world-class connectivity we can transform our public services, bringing efficiencies to business and improving the lives of individuals. Central to this challenge is providing the digital infrastructure that can support these demands. All these connections rely on more fibre-optic cable. Fibre is the gold standard, and we are committed to delivering it, but we have heard concerns from operators that business rates acts as a barrier to that investment.
The commitment given at the Autumn Statement in 2016 will mean that new fibre investment made after April 2017 will not be subject to business rates until 2022. Telecom operators will continue to pay rates on their existing network, alongside all other ratepayers who pay business rates on their business properties, but by providing a temporary relief for new fibre we will give this sector the boost it needs to meet demand. The sector has been calling for this and telling us it will make a difference in the delivery of new fibre. We have made great progress in the last few years to improve connectivity across the UK. Superfast broadband is already available to 93% of homes and businesses; we are on track to reach 95% by the end of the year. We want to go further and providing rate relief on new fibre will help achieve this goal.
We will have the opportunity to discuss the Bill in more detail in Committee but I will briefly outline what it does. This short Bill contains six clauses and, essentially, gives us the powers we need to deliver the relief through regulations. The first three clauses contain the powers for those regulations covering occupied and unoccupied properties on local rating lists, and those on the central rating list held by the Secretary of State. The remaining three clauses deal with consequential and financial matters, allowing the relief to be backdated to 1 April 2017.
In order to calculate how much relief should be awarded on telecom networks, the regulations made under these powers will require the valuation officer to issue a certificate of the rateable value attributable to the new fibre. This will then be used by the local authority to calculate the amount of relief which should be awarded, ensuring that we will give relief only on the new fibre and not on any existing networks. We have already published draft regulations, in August, explaining how this will work and started discussions with the sector on its implementation. Consultation on the draft regulations will run for 12 weeks. The Valuation Office Agency will also hold discussions with the sector on how the relief will operate in practice. So I hope noble Lords will appreciate that we have already explained how the powers will work, thereby ensuring that the scheme operates smoothly.
More widely, the Bill is just one of several measures we are taking to boost Britain’s connectivity, including our ambition for more fibre. Over the summer we announced more details of the universal service obligation, so that every household will be able to get acceptable broadband by 2020. This will provide a vital safety net to ensure that no one is left behind. In the Digital Economy Act we reformed the Electronic Communications Code, which regulates agreements between site providers and communications operators, to make it easier to deploy, maintain and upgrade electronic communications infrastructure. We are also forming a dedicated team to look at how government can remove barriers to deployment, which will work with other departments and industry.
We will see a more competitive market as a result of the agreement between BT and Ofcom to separate out Openreach. A legally separate Openreach will serve not just all its customers but the whole of the United Kingdom. We are supporting fibre rollout through a £400 million Digital Infrastructure Investment Fund. This will help accelerate the rollout of fibre by providing better access to commercial finance for alternative developers of full-fibre infrastructure. In turn, that will help smaller operators compete with larger players. The Government’s investment will be at least matched, on the same terms, by private sector investors. As a result, we expect to see private sector investment into full-fibre broadband reach around £1 billion overall. We are also investing £200 million in our local full-fibre programme, supporting local bodies to stimulate new fibre development.
In total, our efforts are worth £1.1 billion to support the sector, and once this Bill receives Royal Assent the Department for Communities and Local Government and the Valuation Office Agency will move quickly to implement the rate relief for new fibre retrospectively to 1 April 2017. We want to see a country where people are better connected, where everyone can get online and reach their full potential and where no one is left behind. This Bill provides a step on that journey. I beg to move.
The Parliamentary Under-Secretary of State, Department for Communities and Local Government and Northern Ireland Office (Lord Bourne of Aberystwyth) (Con)
My Lords, I thank my noble friend Lord Ashton for introducing this Second Reading debate and all noble Lords who have participated in it. I am grateful for their contributions and for the welcome—so far as it went. This was, predictably, a wholehearted welcome but with regret for some things which the legislation did not contain. I can understand that, and I will deal with it shortly.
I will focus first on what the Bill does contain. The noble Lord, Lord Kennedy, is absolutely right: it is an important facet of the legislation that it helps the residential sector as well as business and provides assistance for the 5G mobile connectivity element, as referred to by the noble Baroness. The objective of this measure is to support and reward companies which invest in the telecoms network. As such, it is important to appreciate that this is actually buying something. This dates from April 2017 so we therefore do not propose to compensate any fibre which was already in the ground in February 2017. This is for new fibre put down for a five-year, fixed-term period. This brings me to the gaming aspect: I too was keen to know whether this was likely to be gamed. On consultation and inquiry it looks unlikely but we are watching this like hawks. If noble Lords think there is some means by which it could be gamed I invite them to let us know because we are, obviously, seeking to make sure it is not. I am pretty convinced that it could not be, because the financial incentive would be zero.
As we have heard in the debate, this is a technical area in respect of both telecommunications networks and how they are treated in business rates. We will, no doubt, return to the detail in Committee, but I reassure the House that we intend to develop the proposals for this measure in collaboration with the sector and only after consultation. The draft regulations are out for consultation at the moment and that will go on until 21 November. There is still an opportunity for everybody to participate in that and I encourage experts and politicians—do not take that the wrong way—to do so, particularly those who understand it in detail and politicians who represent those who do. My noble friend Lady Harding clearly understands this area very well, as does the noble Earl, Lord Erroll. I am very grateful for their participation and for giving the House the benefit of their expertise.
Broadband speeds and connectivity impact on the everyday lives not just of businesses but of households. Investment in new fibre will make a real change to people’s lives and is part of a package worth over £1 billion to the sector, as my noble friend Lord Ashton outlined. Providing rate relief for new fibre will give a welcome boost to investment. My noble friend Lady Harding asked about access to BT lines. They are consulting on that at the moment and we regard it as important. In terms of the rates relief offered, there will be a level playing field for participants in the system. No fear or favour is given to any provider: they are all treated in the same way.
It is important and fair to all ratepayers that telecoms operators pay business rates in the normal way, outside this five-year period where there is relief. We will not therefore seek to provide relief in relation to dark fibre, which would clearly be wrong. However, we have heard concerns about business rates deterring investment in new fibre, and providing this temporary relief from business rates just for new fibre investment would send a clear message to operators. If you invest in new fibre after 1 April 2017 you will not pay rates on it until 2022. For that new investment, you can remove business rates from the spreadsheet. As my noble friend Lady Harding indicated, that is important for getting investment going in this area where we lag behind. This legislation has some important provisions.
The noble Lord, Lord Kennedy, raised the issue of the Henry VIII clause. As he will know, consistent with my approach to legislation I am very keen to bear down on this, so I have looked at it to make sure that it is as confined as it can be. I well remember the noble and learned Lord, Lord Judge, participating in our proceedings and rightly being tough on Henry VIII clauses. This has not yet gone to the Delegated Powers and Regulatory Reform Committee but it will do so. As I say, we seek to confine it as much as is sensibly possible and, of course, it will be subject to affirmative resolution. I hope that both those points reassure the noble Lord.
Such is the technical and fast-moving nature of the sector that I do not think it would be prudent to try to put on the face of the Bill the detailed arrangements of the scheme. These will be done in the detailed regulation through consultation and discussion. I know that noble Lords will understand that. However, we want to ensure that the House is fully aware of how we intend to operate this measure. As I have said, we have published draft regulations and are continuing discussions with the sector, and the Committee stage will give us the opportunity to consider these matters in more depth.
The noble Lord, Lord Kennedy, sought, somewhat mischievously, as is his wont, to try to open this issue of rate relief on a much broader front all over the place. I have indicated previously that we remain very much wedded to the retention of business rates. I have also indicated that we will want to look at the broader issue of the high street versus the internet in the context of the G8—I think I am right in saying that—in which we participate, and take a lead on that. I think that is due next spring, so I can give the noble Lord that reassurance.
As I said, draft regulations will come forward. I reassure those who have a close connection with local government—the noble Baroness, Lady Pinnock, raised this issue—that local authorities will not be financially disadvantaged as a result of the relief. We will, through grant payments, compensate local authorities for the loss of the rates income that they suffer through the rates retention scheme as a result of this relief. This is a commitment that I am happy to restate and it is also given in the consultation document.
I thank all Members who have participated for the support that they have shown, at least in terms of the central core of this legislation. The commitment to provide rate relief on new fibre was given by the Chancellor in the Autumn Statement 2016. To maximise the benefit of this policy, telecoms operators need to be confident that the relief will be applied retrospectively to April 2017. I confirm that that will be the case. That is why we have brought forward the Bill as quickly as we have, with the support of the Opposition Benches, certainly in the other place and here too, to send a clear signal to the sector that this relief is on its way. With that, I commend this legislation to the House.
Telecommunications Infrastructure (Relief from Non-Domestic Rates) Bill
(Limited Text - Ministerial Extracts only)
Read Full debateTuesday 24th October 2017
(7 years ago)
Grand CommitteeTelecommunications Infrastructure (Relief from Non-Domestic Rates) Act 2018 Read Hansard Text Amendment Paper: HL Bill 65-I Marshalled list for Grand Committee - (20 Oct 2017)
This text is a record of ministerial contributions to a debate held as part of the Telecommunications Infrastructure (Relief from Non-Domestic Rates) Act 2018 passage through Parliament.
In 1993, the House of Lords Pepper vs. Hart decision provided that statements made by Government Ministers may be taken as illustrative of legislative intent as to the interpretation of law.
This extract highlights statements made by Government Ministers along with contextual remarks by other members. The full debate can be read here
This information is provided by Parallel Parliament and does not comprise part of the offical record
Lord Kennedy of Southwark (Lab)
My Lords, I refer the Committee to my registered interests as a local councillor and a vice-president of the Local Government Association. I support Amendments 1, 5 and 11 in this group, tabled by the noble Baroness, Lady Pinnock. They highlight some real problems for communities—be they urban or rural—which suffer from poor connectivity, and there has been no real incentive to improve the situation for them by improving speeds. The amendments add the condition that, for the relief to apply, it has to be focused on areas within a local authority where the average broadband speed is 10 megabits per second or less. I think I am right when I say that about 93% of homes and businesses in the UK are able to receive superfast broadband, but it is the copper version. The Bill is generally welcomed.
The noble Baroness is right to focus her amendments on areas with poor connectivity. There is a good argument for this as reliefs provide an incentive to do something that a business might otherwise not want to or be keen to do. The view may be taken that it is not economically beneficial, or something else could be more beneficial. The noble Baroness raises the important issue of how to ensure that those parts of England and Wales, urban and rural, which suffer from poor connectivity can benefit from the relief provided to companies. Otherwise, such areas run the risk of falling further behind. We can all agree that the benefits that fibre can bring could be enormous for all parts of the UK.
Can the noble Lord, Lord Bourne, respond to the concern expressed by the noble Baroness, as we do not want to see parts of the country falling further behind? How can we ensure that this relief, welcome though it is, actually benefits those areas with the worst connectivity?
The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Ashton of Hyde) (Con)
My Lords, my noble friend Lord Bourne has left this one to me. I thank the noble Baroness and the noble Lord for their contributions. I realise the point that some of these issues raise. I will make some general comments on the points made by the noble Baroness, Lady Pinnock, and then come to the substance of the amendment.
The noble Baroness referred to billion-dollar companies—I presume she meant BT. The relief applies to all companies, large or small, because fibre-optic cable is the way of the future. We regard laying fibre-optic cable as a good thing, regardless of where it is and who lays it, so we leave it up to the market. This Bill is a fairly blunt instrument—merely an enabling measure; it was announced by the Chancellor and it is merely to allow the relief to take place. On the very understandable issue of where it should be directed, we have carried out a number of measures to effect that. We understand the issue about rural and hard-to-reach areas—and, indeed, some of the areas in our cities that do not have adequate broadband. The specific amendments do not necessarily address the broad thrust of some of the remarks made by noble Lords, and I will explain why we do not think the amendments are particularly helpful. They would mean that the reliefs provided for in the Bill on new fibre applied only to those areas that currently receive an average speed of less than 10 megabits per second. They would undermine a fundamental part of what we seek to achieve through the Bill. We want to ensure that businesses and households throughout the country, including rural areas and cities, have access to faster broadband. In fact, by the end of this year, 19 out of 20 premises will have access to superfast broadband.
The universal service obligation will provide a digital safety net by giving everyone in the country the legal right to request a connection to broadband speeds of at least 10 megabits per second by 2020. As noble Lords will know, we are also considering a voluntary proposal from BT in that respect. I stress that the 10 megabits per second is a safety net; we want as many people as possible to have access to superfast broadband or better, which is why we have set a target of 95% superfast coverage by the end of 2017, which will continue to be extended beyond that to at least 97% of premises.
We have delivered a series of measures to ensure that all areas can and do have access to the broadband speeds that they need. For example, Defra has just made available £30 million of funding under the rural development programme for England, targeted at supporting rural businesses and growth for broadband services in those areas with speeds of 30 megabits per second or faster where that is not currently available or planned. In the 2016 Autumn Statement, the Government announced more than £1 billion to support digital infrastructure, targeted at supporting the rollout of full fibre connections for future 5G communications. The first wave of projects for our local full fibre networks programme has been launched, and includes a mixture of urban and rural areas. We are soon to launch a challenge fund for local bodies to bid for access to £200 million, with all parts of the UK free to participate, and we anticipate a significant number of applications from predominantly rural areas. We think that those projects will encourage further commercial interventions to build and extend fibre networks.
We support better broadband in all areas, but we believe that the amendment would limit the rate relief to only those local authority areas with an average of less than 10 megabits per second, which would damage the rollout of faster broadband across the UK. First, it would mean that much of the new fibre to be installed to the premises—FTTP—would be excluded from the relief. To deliver a network that is fit for the future, we need more fibre everywhere, including in areas that currently get more than 10 megabits. This amendment could deter significant investment and have the perverse result that less full fibre—the gold standard of broadband technology—was actually deployed.
Secondly, the amendment would exclude from the rate relief new fibre in those villages and rural areas that do not currently have high-speed broadband but happen to fall within a local authority area which does on average have high speed broadband. It would mean excluding from the relief whole areas where support is needed and where the measures provided for in the Bill would make a difference. At the moment, less than 3% of premises across the UK receives under 10 megabits per second, so the amendment potentially excludes up to 97% of premises from the relief.
Therefore, I hope that the Committee will recognise that the amendments should not be included in the Bill. However, we agree that improving broadband in those areas with less than 10 megabits is a priority, which is why we have put in place the universal service obligation. The new fibre rate relief as proposed through the Bill will support that objective. I hope that, with this in mind, the noble Baroness will withdraw her amendment.
Baroness Pinnock
My Lords, I support the amendments tabled by the noble Lord, Lord Kennedy, because he, like I did in previous amendments, seeks to focus the relief provided in the Bill on those places and areas that need it most. He is asking to put in safeguards to prevent some companies deliberately laying cable with no purpose and to ensure that what is done on rate relief achieves the outcome the Government seek, which is to provide more domestic premises and businesses with fast broadband connectivity. I look forward to the response from the Minister—I am not sure which one, perhaps it will be a double act. The questions that the noble Lord, Lord Kennedy, has raised are important and need an answer.
The Parliamentary Under-Secretary of State, Department for Communities and Local Government and Northern Ireland Office (Lord Bourne of Aberystwyth) (Con)
My Lords, on this occasion I am genuinely grateful to the noble Lord, Lord Kennedy, for raising this matter. I am not always grateful to him for raising matters but I am today. I am grateful also to the noble Baroness, Lady Pinnock, for her comments. We have a shared interest here, in that I cannot believe that anybody wants to see gaming in the system.
Concerns about gaming in the proposed rate relief for new fibre were raised by a small number of operators in August, when we first shared with them our proposals for the draft regulations. As the noble Lord has said, my noble friend Lady Harding raised this issue at Second Reading. I think she went on to say that she was not by any means convinced that there would be gaming but she raised it as a concern, so we share an interest in ensuring that there is not gaming.
Other operators have told us that they do not believe there is scope for gaming and support the proposed scheme. Nevertheless, we take this matter seriously and have been investigating these claims. Overall, our initial view is that it is unlikely gaming will be used in this tax relief. As I have said, we continue to discuss this with the sector and we are still gathering evidence.
However, if it will help the Committee, I will explain in a little detail why concerns as to gaming have arisen, why we believe such gaming is unlikely, in practice, and how I propose to deal with the matter between now and Report. What is being seen as the potential risk of gaming comes from the line we propose to draw in regulations as to when the relief should apply. New fibre installed after 1 April 2017 will receive the relief. However, some operators will choose instead to use existing fibre optic cable which was installed prior to 1 April 2017 but has not yet been activated. This is known as dark fibre. The objective of the measure in the Bill is to support investment in new fibre broadband infrastructure. Therefore, previous investment in existing fibre, including dark fibre, is not considered to be new fibre, has not been incentivised by this measure and will be outside the relief.
We have heard concerns that the proposed different treatment in the relief scheme of new fibre, which gets the relief, and dark fibre, which does not, could lead to some gaming in the system. It has been suggested that telecom operators may replace or duplicate existing dark fibre with new fibre merely to secure the rate relief. It has also been suggested that some operators may install new fibre in existing locations to gain a competitive advantage over existing operators in that location, merely because of the rate relief.
To understand this better we are investigating the costs and operational implications of installing new fibre into existing infrastructure, such as ducts. By comparing these costs to the potential saving on business rates from the new fibre relief we can identify where, in principle, the scope for gaming exists. To help us with that work we have held discussions with telecom companies regarding this matter and are now considering evidence provided by one operator, Gamma Telecom, which I mentioned at Second Reading. The consultation on the draft regulations runs until 21 November, and during this time we would like to hear views from other operators regarding the risk of gaming. This work is at an early stage and noble Lords will understand that some of the data we are using in this study is commercially confidential.
Our initial findings are that in the vast majority of cases—perhaps covering more than 99% of the telecom network—it will not be financially viable for operators to install new fibre merely to gain the relief. In those cases, the cost of purchasing the fibre and the labour costs associated with opening existing ducts—putting the fibre through those ducts and then connecting the fibre—exceeds the saving from business rates. In those situations it will be cheaper to use existing dark fibre, so gaming would not occur. Our focus, therefore, is on smaller networks where the business rates paid in respect of each kilometre of network are higher than for larger networks. The potential for making a saving in business rates is therefore also higher.
We are looking closely at the circumstances in which new fibre may be installed in existing smaller networks and exploring more of the costs associated with accessing existing ducts. These circumstances account for a very small fraction of the telecoms network—probably less than 1%. That said, I cannot see why 1% should be ignored and if there is evidence of the possibility of gaming, I would want to ensure that we act. But even if there are circumstances where, in principle, the rates saving exceeds the costs, it does not necessarily follow that, in practice, gaming is viable. For example, it may not be possible to add new fibre to ducts which are already in use, while switching from one fibre to another may cause interruption or disruption to the customer, which may be especially unacceptable for business customers and unattractive to the operator. But, as I have said, we agree with the noble Lord and the noble Baroness that we do not want a tax system that is open to gaming in the way that has been suggested. If from our work with the sector we conclude that gaming is likely, I assure the noble Lord and the noble Baroness that we would consider how to amend the draft regulations to prevent it.
The amendments we are considering would move the definition of new fibre into the Bill. This would in fact significantly limit our ability to tackle any gaming. The approach in the Bill of defining in regulations the meaning of new fibre gives us the scope to first identify the circumstances in which gaming might arise before we devise the solution. It allows us to ensure that any solution is practical and to respond quickly to any future circumstances where gaming might arise.
Moving on to the practical points put by the noble Lord and echoed by the noble Baroness about meeting the sector, as I have indicated, I intend to meet Gamma between now and Report, which will probably be towards the end of November. I will certainly keep the House—including the noble Lord and the noble Baroness—informed about how the discussions are going. I would be happy to include them in the thrust of what is happening, and expect to act on any concerns about gaming which indicate that this issue needs addressing. As I say, we are as keen as they are to tackle any potential gaming. I hope with that assurance and the guarantee that I will keep the noble Lord and the noble Baroness involved with what is happening, that the noble Lord will feel able to withdraw his amendment.
Lord Kennedy of Southwark
My Lords, I thank the Minister for that helpful response. I am happy to withdraw my amendment at this stage. I am delighted that the Minister is meeting representative of the industry, particularly Gamma. That is very good.
I hope the Minister is right on all these things and that there is no issue with gaming at all. My only concern is that we should pass the legislation in a way that eliminates it. We are often told by the Government that parliamentary time is precious. It would be a shame to get the Bill through and then find, in a year’s time, that there was a problem after all and people are doing the things which we do not think they will now. I like the idea of putting something in regulations as a good way forward. They can be amended a bit more easily. I was at a meeting this morning on a completely different subject: a very good initiative that the Government had come forward with many years ago, when I first joined the House, but now there are some concerns about how it is operating. To get that initiative changed, we have to go back and get the law changed. That is not always easy. I thank the Minister for his response and look forward to further discussions. I beg leave to withdraw the amendment.
Baroness Pinnock
My Lords, obviously I support Amendments 4, 8 and 13 in the name of the noble Lord, Lord Kennedy, which draw attention to the issues that he has just spoken about. Amendment 15 in my name asks for an impact study after 12 months to see how effective the provision is. In this instance, there have been difficulties that I have struggled with, as with the earlier amendment proposing a local authority boundary for an assessment of an average 10 megabits per second.
In Amendment 15, I have used “rural” as an accepted definition of areas which, on the whole, have poor broadband connectivity. If this was accepted by the Government, obviously it could be extended to all parts of the country. I am focusing again on the need for the Bill to use public funds effectively, by targeting their impact where they can make the most significant difference. Subsection (2)(c) of my proposed new clause refers to mobile phone connectivity. This relates to the fact that until we get 5G coverage, which I believe will be in 2020—it could be a year or two later—connectivity will depend on fibre-optic cables going as far as the mobile phone masts. This will have a big impact on those many families who cannot afford broadband but rely on mobile phones for their connectivity everywhere. They rely on them for accessing public services, which are now digital by default. If they can, they also make job applications via their phones, rather than having broadband to the house. That is why I raise these issues today.
The fundamental part of the amendment is to have a pause or period in which the Government assess the impact of this rate relief and ask: is it doing what we hope it will do? Can we improve the quality of mobile phone coverage by ensuring that some of the fibre-optic cable that is laid goes to mobile phone masts, in preparation for 5G coverage?
Lord Ashton of Hyde
My Lords, I am grateful to noble Lords for laying out their amendments clearly. As the noble Lord, Lord Kennedy, said, these amendments are very much linked to the last group on which I answered—the first group today.
Amendment 4, which was moved by the noble Lord, Lord Kennedy, seeks to ensure that there is a requirement for recipients of the relief to,
“give due consideration … to rural and hard to reach areas”.
In a similar vein, the noble Baroness, Lady Pinnock, proposes an amendment to require a report on the impact of these measures on rural connectivity. Although I might support the spirit of these apparently reasonable amendments, I do not believe that they are necessary. I share the concerns of many noble Lords that rural and remote areas should not be left behind in the drive to improve and extend high-quality broadband connectivity. I declare an interest: I live in a rural area and am absolutely aware of the problems to which noble Lords have alluded.
The relief provided for in the Bill is available across England and Wales. No area is excluded or exempted, and we have engaged with the Welsh Government to support the application of the measure in Wales. Providers deploying fibre connectivity in the countryside will receive the same rates relief as those deploying in the hearts of our great cities. That is important because the problems of slow speeds are the same, regardless of where the household is located. When we talk about social deprivation, for example, it is still a problem in an inner city as well as a rural area.
Providers are free to deliver connectivity wherever the market allows. However, to ensure that people living and working in rural and remote areas can and do have access to the broadband speeds that they need, the Government have delivered a series of measures, which I mentioned in my previous answer—but I shall remind noble Lords of them just briefly. There is the superfast rollout programme, which is worth about £1.7 billion of public money. We are currently consulting on the broadband universal service obligation, which will apply across the United Kingdom, with at least 10 megabits per second. Then there is the local full fibre networks programme, worth £200 million, and the rural development programme for England at £30 million for broadband. Those measures have been a great success, with 45% of households with superfast in 2010 rising to 95% by the end of this year.
It is clear that the relief will be alongside a package of measures put in place by the Government to help spread to those living and working in rural and remote areas the benefits of economic growth and access to services that better broadband connectivity will bring. Together, they will also lay the foundations needed for the next generation of mobile technology, known as 5G, to which the noble Baroness, Lady Pinnock, referred.
The noble Baroness’s proposed new clause in Amendment 15 would require a report on the impact of the measure on rural connectivity. I support the outcome—that is, an understanding of the impact of Government’s action in this area—but my concern is that requiring a report on the impact on rural connectivity may have an adverse effect. Telecoms networks take time to plan and build, and investors rely on certainty. A report on the relief after 12 months is premature, given the time taken to deploy networks. My noble friend Lord Bourne will cover reporting arrangements in greater detail later, but my concern is that if the Government are required to report so soon, it could create uncertainty over whether the relief will continue, and lead to unintended consequences.
On subsection (2)(c) of the noble Baroness’s proposed new clause, on mobile coverage, I note that the main benefit of the measure to mobile will be in aiding the deployment of 5G. It will take longer than 12 months for the next generation of mobile technology to appear; we do not quite know what it is yet.
Of course, we will monitor the effectiveness of the scheme in providing new fibre, which will include rural areas, but we need to allow the sector appropriate time to build networks in all areas. Ofcom reports on infrastructure deployment every year, and we should see the impact of all the Government’s measures in this field in due course. In view of those explanations, I hope that the noble Lord will withdraw his amendment.
Lord Kennedy of Southwark
The Minister made the point, with regard to the amendment of the noble Baroness, Lady Pinnock, that 12 months may be too soon. After what period of time does he think a report would be useful? Would it be 12 months, 24 months or 36 months?
Lord Ashton of Hyde
Ofcom reports every year, so I do not think it would matter whether it is 12 months or 24. My point was specifically on mobile coverage for which the 12 months would not be appropriate, because 5G has not really been invented yet, so there certainly will not be any visible signs on mobile coverage. Essentially, we are saying that we want fibre-optic cable to be laid over all areas of the country to improve future mobile reception and also fibre to the premises, which is what the future gold standard is. We need it everywhere, not just in rural areas. While we accept that rural and hard-to-reach areas have a problem, I have laid down a series of other measures to deal with those areas specifically.
Lord Kennedy of Southwark
I thank the Minister for that response and for his response to my other question. I am happy at this stage to withdraw my amendment.
Lord Bourne of Aberystwyth
My Lords, I thank the noble Lord and the noble Baroness for their contributions on this amendment dealing with the possibility of a review. I welcome the opportunity to return to this proposed new clause, which, as the noble Lord rightly says, was discussed in Committee in the other place.
We have said throughout the passage of the Bill that we intend to work with the sector and the Valuation Office Agency to ensure the smooth implementation of this relief. I happily restate that. We have published draft regulations for consultation; they are up for consultation until 21 November. I hope that noble Lords will see from the debate that we have just had in relation to gaming that my department and the Government as a whole are looking very closely at the detailed operation of the scheme. We all share the objective of wishing to see this scheme implemented effectively and quickly from the outset. This in turn will lead to new fibre growth and improved broadband. That is the aim, which I know that noble Lords share.
However, I fear that the proposed new clause would not achieve that aim and, if included in the Bill, could threaten the success of this scheme. I note what the noble Lord says about business uncertainty elsewhere, but that hardly means that a bit more uncertainty is a good thing or something that we should not be concerned about. Sending a clear signal to investors in the telecoms sector is critical to the success of this measure, which is why we have moved quickly to bring forward the Bill and why we are consulting early on the draft regulations. Investors need to see a clear intention on the part of the Government to deliver relief from 1 April 2017 for five years up to 2022.
One suggestion is about the length of the relief being provided. Any suggestion that it might not last the full five years is not desirable. Those sorts of signals can make the difference to decision-makers in telecoms companies in deciding whether to proceed with an investment. Businesses thrive on certainty. Decisions in telecoms companies are being made now on the basis of the promise made by the Chancellor that new fibre will have relief until 2022.
I understand the objective of the amendment, but it would create uncertainty in the sector and damage the prospects for success of the measure. By providing for, in effect, a review of the rate relief after only one year, we will sow the seeds of doubt in the sector. The sector may fear that the Government might cancel or otherwise negate the relief after a year—especially when, as the amendment clearly states, the review should consider the duration of the relief. We could expect telecoms companies to react in only one way to the prospect of such a review: they will be less likely to invest, which would damage the rollout of broadband. Therefore, I am afraid that the Government cannot accept the amendment.
We will, of course, continue to monitor the effective operation of the scheme to ensure that it is indeed providing relief on new fibre. We will work with the sector and the Valuation Office Agency to do that. The powers in the Act will allow us to adjust the scheme where necessary such as to reflect changing and new technologies. Any suggestion that the relief might last less than five years is something that we cannot subscribe to.
The amendment would also require the Government to assess the impact of the relief on local government. In fact, that is information which we already plan to collect and publish. I can give that undertaking. Each year, the department publishes non-domestic rating returns containing the information about the business rates income and relief in each local authority area, which this seems to ask for. I can ensure access to that; we can provide the link so that that information is readily available. Those returns are based on information provided to us by local government, and they can be found in full on our website. As I say, I am very happy to provide guidance on how that can be accessed. Those returns will in future include information about the level of new fibre relief. We expect the first returns to include this information to be the outturns for 2017-18, published in autumn next year. I am happy to provide that information and, indeed, to meet the noble Lord and the noble Baroness, with officials, to explain how a lot of the information that has been requested is already available.
Throughout the passage of the Bill through this House and the other place, we have been clear that we would compensate local government for the cost of its share of the relief, and I give that assurance again today. In view of these assurances, I hope the noble Lord will feel able to withdraw his amendment, with the undertaking that I am happy to meet him and the noble Baroness to go through this, perhaps to explain how at least some of this information is available at the moment.
Lord Kennedy of Southwark
I thank the Minister for his helpful response. I am happy to withdraw my amendment. I think that brings us to the end.
Telecommunications Infrastructure (Relief from Non-Domestic Rates) Bill
(Limited Text - Ministerial Extracts only)
Read Full debateTuesday 28th November 2017
(6 years, 11 months ago)
Lords ChamberTelecommunications Infrastructure (Relief from Non-Domestic Rates) Act 2018 Read Hansard Text Amendment Paper: HL Bill 65-R-I Marshalled list for Report (PDF, 60KB) - (24 Nov 2017)
This text is a record of ministerial contributions to a debate held as part of the Telecommunications Infrastructure (Relief from Non-Domestic Rates) Act 2018 passage through Parliament.
In 1993, the House of Lords Pepper vs. Hart decision provided that statements made by Government Ministers may be taken as illustrative of legislative intent as to the interpretation of law.
This extract highlights statements made by Government Ministers along with contextual remarks by other members. The full debate can be read here
This information is provided by Parallel Parliament and does not comprise part of the offical record
Lord Bourne of Aberystwyth
That the Report be now received.
Clause 1: Relief from local non-domestic rates: occupied hereditaments
Amendment 1
The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Ashton of Hyde) (Con)
My Lords, the noble Baroness, Lady Pinnock, raised connectivity in remote areas. I thank her for her remarks. It is an issue that we explored at Second Reading and in Grand Committee, and one that I absolutely agreed is of utmost importance, as I do now.
The amendment seeks to ensure that deprived or isolated areas receive “a certain proportion” of the relief. However, it is not clear what exactly that would entail as the term “a certain proportion” is not defined. By its very nature, all areas would get “a certain proportion” of the relief depending on how much and where fibre is deployed and lit from 1 April 2017. If the noble Baroness intends for “deprived or isolated areas”—again, those are not defined—to receive a higher proportion of the relief than others, the amendment would not have that effect.
The Government cannot therefore agree to the amendment as it is technically deficient and does not fully engage with how the telecoms networks are deployed and the approach taken to upgrade our networks with more fibre. I do not want to dwell on the technical deficiencies because even if they were resolved the amendment would still not be in keeping with the Bill’s very simple aim—to promote fibre connectivity wherever it takes place.
As my right honourable friend the Minister for Digital said in the other place, we need to think of the fibre network like a growing tree—he is a romantic soul. We already have a strong trunk, which links our great cities and connects Britain to the world, but we must now grow the boughs and branches. We must grow out this fibre not just in the trunk or the boughs, but in a multitude of branches that serve people’s houses, businesses, and all the public services of the land. The point is, we need to support fibre everywhere and if the relief is not available to support the growth of those branches then they may not grow at all, such is the difficult balance of the business case for more fibre. Therefore, if we seek to ensure that particular areas benefit more than others it is possible we will undermine that business case and deprived or isolated areas may not benefit at all. I do not believe this was the noble Baroness’s intention.
We do agree that it is vital to see improved connectivity in remote and indeed rural areas. People need at least acceptable broadband at home and at work; it is essential for modern life. That is why the Government have consulted on the design of a broadband universal service obligation, which would provide a digital safety net by giving everyone, no matter where they live, the legal right to request a connection to broadband speeds of at least 10 megabits per second. But we are not satisfied with just acceptable levels of access: we want to ensure that businesses and households throughout the country have access to faster broadband—superfast and better. By the end of this year, 19 out of 20 premises will have access to superfast broadband. We are taking steps to ensure that the figure rises even further in the next two years so that 97% of households and businesses have superfast access.
Some £30 million of the £200 million funding under the England Rural Development Programme has been made available through Defra. This is targeted at supporting rural businesses and growth, for broadband services in these areas at speeds of 30 megabits per second or faster where this is not currently available or planned, and to ensure that all areas can and do have the broadband speeds they will need for the future.
The Government are delivering a series of measures to support the rollout of fibre broadband in addition to the measure we are debating today. We launched the £190 million challenge fund as part of the Autumn Budget for local bodies to bid into as part of the local full fibre networks programme. As it was being developed during this year, we received a great deal of interest in that programme from local bodies in all parts of the UK, not least in rural and remote areas. The projects delivered under this programme will, we expect, encourage further commercial development of future-proofed fibre networks right across the country. This follows our announcement last year of more than £1 billion to support digital infrastructure.
Also part of that substantial sum is the digital infrastructure investment fund. That involves £400 million of government financing now being administered by fund managers and will attract significant private investment which will be available for alternative providers to use for fibre networks. This work will have impacts right across the country and enable operators to make the commercial case for wider deployment. In summary, therefore, the Government acknowledge that all areas of the country need decent broadband. That includes urban and rural areas which do not have it. I have outlined the measures the Government are taking to achieve this, but the Bill has one simple aim: to incentivise new fibre optic cable wherever it is laid, because we need it everywhere. I therefore hope that the noble Baroness will feel able to withdraw her amendment.
Baroness Pinnock
My Lords, I notice that the Minister, in his detailed response, made the assertion that we would have what he described as “decent broadband” throughout the country. I have to say that I query the definition of “decent broadband” that is provided by the Government. A speed of 10 megabits per second is not really acceptable in the current way that business and households operate. The Government’s measure of “decent broadband” being within one kilometre of where the fibre is laid to the street cabinet certainly does not provide broadband speeds at the property, given that 300 metres away it has degenerated to such an extent that the improvement is negligible.
What concerns me, and I have pressed it throughout the passage of the Bill, is that all public bodies—understandably, and supported by me—are moving to digital by design. For instance, if you are unemployed and in receipt of employment and support allowance you are required to make job applications online. If you are not in a facility with good broadband speeds, that is really difficult.
Lord Ashton of Hyde
Let me make one thing clear: the universal service obligation, which we have said will come in 2020, will be at 10 megabits per second which although I know is not acceptable to a lot of people, will allow things such as job applications to be done: you can even download and watch a film at 10 megabits per second. The universal service obligation, which is a safety net, will be available to everyone.
Lord Kennedy of Southwark (Lab Co-op)
My Lords, first, I draw the attention of the House to my registered interests: namely, as a councillor in the London Borough of Lewisham and a vice-president of the Local Government Association.
As we have heard, the Bill is not controversial. It seeks to help with the boosting of the switchover to fibre from our old copper broadband network. This is important as we need to increase the take-up of fibre at a faster pace, and it is recognised that an exemption from business rates could prove an incentive to speed up the process and get more of our outdated network on to a fibre network in a shorter period of time.
Amendment 4 in my name adds a new clause which puts into the Bill the time from which the relief from business rates will operate; namely, five years from 1 April 2017. I considered the issues at Second Reading and in Committee and my amendment seeks to give an additional power to the Secretary of State in England and to Welsh Ministers in Wales: that is, the ability to seek approval to extend the period for which the business rate relief is available to those companies that are installing new fibre beyond the initial period of five years.
The extension would have to be approved by both Houses of Parliament using the affirmative procedure. There will be parliamentary oversight of the process as it enables the Government to have the power to extend the scheme without the need for primary legislation. I think it is proportionate in the circumstances. It is a simple measure and will be an effective way of continuing the scheme if it has been deemed successful in helping roll out the network faster. Of course, if it has not been successful, the scheme will be ended and the option will not be taken up. I beg to move.
The Parliamentary Under-Secretary of State, Department for Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)
My Lords, I am grateful to the noble Lord, Lord Kennedy, for moving this amendment. As noble Lords will know, the matter of whether the five years of the rate relief scheme should appear in the Bill was also raised by the Delegated Powers and Regulatory Reform Committee.
As currently drafted, the Bill would allow the relief to apply indefinitely. The draft regulations that we published for consultation would provide that the relief is limited to five years from 1 April 2017—so the five-year period of the scheme appears in secondary legislation rather than in the Bill. We have taken this approach to retain the ability to repeat the scheme for later years without the need to return for more primary legislation. This will allow us to consider the success of the scheme in a timely manner as 2022 approaches.
Nevertheless, the noble Lord, Lord Kennedy, has made a very strong argument for why the five years should appear in the Bill. We have been clear that the purpose of the Bill is to implement the Chancellor’s commitment to offer five years of relief, and we now accept that such a fundamental aspect of the policy should appear in the Bill. But I am grateful that the noble Lord also recognises the value of retaining the ability to extend or repeat the relief scheme without another Bill. Therefore, we also agree that we should take a power to change the period of the relief and that this power should be subject to the affirmative resolution procedure, as the noble Lord set out.
As I have discussed with the noble Lord—and I appreciate the opportunity to do so—we intend to move our own amendment at Third Reading, achieving the noble Lord’s aim but ironing out one or two drafting defects just to ensure that we can make these changes. We will table the amendment tomorrow. Once more I thank the noble Lord for his constructive and helpful approach. I hope that, with these assurances, he will feel able to withdraw the amendment.
Lord Kennedy of Southwark
I thank the noble Lord, Lord Bourne, very much. As he said, we had a very useful meeting a few days ago. I am very pleased that the Government have accepted the main thrust of what I am suggesting to the House. I am happy to withdraw the amendment at this stage and look forward to seeing the Minister’s amendment when he tables it tomorrow.
Telecommunications Infrastructure (Relief from Non-Domestic Rates) Bill
(Limited Text - Ministerial Extracts only)
Read Full debateWednesday 6th December 2017
(6 years, 11 months ago)
Lords ChamberTelecommunications Infrastructure (Relief from Non-Domestic Rates) Act 2018 Read Hansard Text Amendment Paper: HL Bill 65-TR-I Marshalled list for Third Reading (PDF, 65KB) - (5 Dec 2017)
This text is a record of ministerial contributions to a debate held as part of the Telecommunications Infrastructure (Relief from Non-Domestic Rates) Act 2018 passage through Parliament.
In 1993, the House of Lords Pepper vs. Hart decision provided that statements made by Government Ministers may be taken as illustrative of legislative intent as to the interpretation of law.
This extract highlights statements made by Government Ministers along with contextual remarks by other members. The full debate can be read here
This information is provided by Parallel Parliament and does not comprise part of the offical record
“(aa) the day concerned falls before 1 April 2022,”
The Parliamentary Under-Secretary of State, Department for Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)
My Lords, this amendment will place in the Bill the five-year duration for the rate relief scheme for new fibre. The scheme will apply retrospectively from 1 April 2017 to 31 March 2022. The need to have the five years on the face of the Bill was discussed at Report. I am most grateful to the noble Lord, Lord Kennedy, for raising this matter and agreeing to withdraw his amendment at that stage so that we could bring forward these changes.
The amendments will also allow for the period of the rate relief scheme to be extended by regulation using the affirmative resolution procedure. This will ensure that, if the Chancellor wants to repeat or extend the rate relief scheme, that can happen quickly without the need for another Bill but still with the approval of Parliament. I trust that noble Lords will agree that the amendment meets the commitment I gave on Report. I beg to move.
Lord Kennedy of Southwark (Lab Co-op)
My Lords, I am very grateful to the noble Lord, Lord Bourne of Aberystwyth. I draw the House’s attention to my interests as a local councillor in Lewisham and vice-president of the Local Government Association. As he said, we had a very fruitful meeting after I tabled my amendment at Report. I was very happy to withdraw that, and I am very pleased with what the Minister has brought back today. As he says, it has enabled the Government to put the dates in the Bill. If they want at some future point to extend the scheme, they can, without the need for primary legislation. It is a very sensible move.
Baroness Pinnock (LD)
My Lords, I draw the House’s attention to my register of interests as a councillor in Kirklees and as another vice-president of the Local Government Association. As we discussed on Report, we agree with and support the amendments proposed by the noble Lord, Lord Bourne, and initiated by the noble Lord, Lord Kennedy. We thank the Minister for his very helpful meetings on the Bill. I have certainly explored a number of issues, although I have not got very far, and I do not intend to let them go. There is a growing need to think about the accessibility and affordability of broadband and mobile networks for people less well off than the majority, when they are going to rely on them for access to public services and other important aspects of their lives. That issue will not go away, and I hope Ministers will take that point away and think about it.
As for the amendments, we will obviously support them.
Lord Bourne of Aberystwyth
My Lords, I shall respond to the typically generous comments from the noble Lord, Lord Kennedy, and the noble Baroness, Lady Pinnock, regarding the Bill in general. I also want to put on record a couple of other issues. First, I undertook that we would look at gaming, and after discussing the issue with Ofcom and Gamma Telecom—I have shared this with the opposition parties—they have concluded that there is no risk of gaming in relation to fibre, but we shall keep a watching brief on that issue. I also take note of what the noble Baroness said about rural issues and deprived and isolated areas that are difficult to get to. Again, we would want to take account of and pay special attention to that.
At Second Reading we benefited from hearing about the concerns about business rates of the noble Earl, Lord Erroll, and my noble friend Lady Harding. I am very grateful to the noble Lord, Lord Kennedy, and the noble Baroness, Lady Pinnock, for their constructive approach to the Bill. I am also grateful to my noble friend and co-pilot Lord Ashton for the support and expert knowledge he has provided throughout the Bill’s passage. I also extend thanks to the Bill team: Jonathan Denning, Nick Cooper, Pete McDougall, Stewart Kemsley, Thomas Adams and the ever-smiling Homaira Abdullah.
This Bill will help to close the digital divide and to get higher-quality, more reliable connectivity to households and businesses across the country, benefiting every sector of the economy. I beg to move.
“(aa) the chargeable day falls before 1 April 2022,”
“(ba) the chargeable day falls before 1 April 2022,”
“6A_ In section 143 (orders and regulations)—(a) in subsection (3), for “(3A)” substitute “(3ZA)”;(b) after subsection (3) insert—“(3ZA) The power to make regulations under section 43(4FA), 45(4EA) or 54ZA(4A) is exercisable by statutory instrument, and a statutory instrument containing any such regulations (whether alone or with other provision) may not be made—(a) in the case of regulations relating to England, unless a draft of the instrument has been laid before and approved by resolution of each House of Parliament;(b) in the case of regulations relating to Wales, unless a draft of the instrument has been laid before and approved by resolution of the National Assembly for Wales.””
Lord Kennedy of Southwark
My Lords, briefly, I want again to thank the noble Lord for handling this Bill in his usual courteous manner. It has broad support across the House and I have been very happy to work with the noble Lord and his colleagues on it. I also thank his Bill team—all the names that he mentioned. I have met a number of his officials and they have been helpful and courteous at all times.
Telecommunications Infrastructure (Relief from Non-Domestic Rates) Bill
(Limited Text - Ministerial Extracts only)
Read Full debateTuesday 23rd January 2018
(6 years, 10 months ago)
Commons ChamberTelecommunications Infrastructure (Relief from Non-Domestic Rates) Act 2018 Read Hansard Text Amendment Paper: HL Bill 65-TR-I Marshalled list for Third Reading (PDF, 65KB) - (5 Dec 2017)
This text is a record of ministerial contributions to a debate held as part of the Telecommunications Infrastructure (Relief from Non-Domestic Rates) Act 2018 passage through Parliament.
In 1993, the House of Lords Pepper vs. Hart decision provided that statements made by Government Ministers may be taken as illustrative of legislative intent as to the interpretation of law.
This extract highlights statements made by Government Ministers along with contextual remarks by other members. The full debate can be read here
This information is provided by Parallel Parliament and does not comprise part of the offical record
The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)
I beg to move, That this House agrees with Lords amendment 1.
Rishi Sunak
It is an honour to begin my first Bill as a Minister. The Government have been and remain relentless in our pursuit of seeing every home in Britain provided with a decent broadband connection. My right hon. Friend the Member for Wantage (Mr Vaizey) is not in his place, which is a first for a broadband debate in this Chamber in recent times, but thanks to the good work he started, by the end of last year around 95% of premises had superfast broadband.
Under the universal service obligation introduced by this Government, every home in Britain will gain access to a high-speed connection within the next three years. That goal is indispensable to creating a cohesive, modern and economically vibrant Britain, and this Bill is another important step in ensuring we achieve just that.
At the autumn statement in 2016 the Chancellor announced a rate relief scheme for new telecom fibre. The relief will apply for five years, retrospectively from 1 April 2017, and it forms part of a wider package of support for digital infrastructure worth £1.1 billion.
The Bill provides us with the powers needed to introduce the relief scheme, and the relief itself will be introduced by technical regulations. In September 2017 we published detailed draft regulations for consultation. My Department is now considering responses to that consultation and is holding further discussions with stakeholders on the details. I am pleased to report to the House that the responses have been very positive, and I can therefore confirm that we will be ready to introduce the relief scheme shortly after the Bill receives Royal Assent.
As hon. Members will recall, the Bill received wide- spread support when it was considered by the House last year, and that support continued through the debates in the Lords. The Lords amendments make a helpful improvement by ensuring the five-year relief period appears in the Bill, as Opposition parties called for and as welcomed by my ministerial colleague Lord Bourne of Aberystwyth. The amendments will give telecom operators the added assurance that the relief scheme will operate for five years.
The amendments will still allow us to extend the period of the rate relief beyond five years, if we wish, through secondary legislation. Stakeholders wished to see that ability retained in the Bill, and it means that if the Chancellor wants to repeat or extend the relief scheme, we can do so quickly without a further Bill but still with the approval of Parliament. As a tax measure, it will of course be for the Chancellor to decide in the future if such a repetition or extension is desirable.
I commend the amendments to the House.
Jim McMahon (Oldham West and Royton) (Lab/Co-op)
I congratulate the new Minister on his promotion. I look forward to working with him on matters of common interest such as local government finance, which is a niche subject that does not always attract wide attention, but it is important, and it is important that we see reform. I made that offer to his predecessor, and most of the issues are not partisan at all. They are technocratic but essential, and if there is room for us to work together, we should seek to do so.
I am pleased to see the Bill return having been amended in the Lords, and I am pleased that the Government have received the amendments in the way they have. As we have seen in our debates, this is not necessarily a subject that gets Members excited or that results in mass attendance, but the people who do attend understand how important it is. This financial relief is intended to ensure that as many parts of England and Wales as possible benefit from high-speed fibre broadband. A financial incentive is an important mechanism for achieving some of that.
We were very probing in Committee and, unsurprisingly, we will be looking to see how the Bill works in practice. In particular, can we ensure that this is not just a tax relief for the big providers and that it gets to the smaller providers, too? Can we ensure it has a net effect on the extension of fibre broadband, or will it basically provide a subsidy for installations that would have happened regardless? Have we been able to reach a position where the providers themselves are satisfied that the Bill goes some way towards balancing the revaluation that they met with a degree of concern? I read recently in the Financial Times that BT and Virgin had hinted at the possibility of considering legal action against the revaluation, and I am interested to know the outcome.
Fundamentally, the Bill does two things. First, it rescues an element of the Finance Bill that fell when the election was called. The Bill contained many important reforms that were not contentious or party political but would have allowed local government finance to catch up with the changing times. I encourage the Minister to look at other provisions in the Bill to see what else could be brought forward to benefit local government.
Secondly, the measure proves that the Government can look at financial incentives for business growth, but business rates, of course, cover a wide range of business activity. It has been a long-standing criticism that we have not yet managed to address the impact of the treatment of plant and machinery, for instance, on business investment in new technologies and in new plant and machinery in those premises.
That has also been a concern on our high streets. When banks and building societies close, they are often the only provider of a cash machine in town. When a local convenience store agrees to take on the cash machine, it generally finds itself in a worse position at the end, despite providing a community service, because the turnover at the cashpoint will count towards its rateable value.
I raise those two points because I think there is a demand in industry and the community to ensure that business rates add value to our communities, rather than detract from them. As we embark on Brexit, we need to ensure that our country is in the most robust position possible to attract investment and ensure that we have strong infrastructure.
Finally, I pay tribute to Members in the other place, particularly Lord Kennedy, who spent a great deal of time on the issue and was involved in amendment 2. Let us see whether it makes a difference on the ground, because we pass legislation here not for the sake of it, but to make a material difference to public policy and the community. I will be waiting with interest to see whether this has a net effect on infrastructure investment.
Rishi Sunak
I thank the hon. Member for Oldham West and Royton (Jim McMahon) for his kind words of welcome. He has a long and distinguished track record in local government, and I very much look forward to working with him in the constructive manner he outlined. He made a couple of points that I would like to address briefly. The first point was about who is eligible for the relief. As he knows, it is available for any company deploying new fibre. One of the expectations and hopes for the relief is that it will bring more alternative and smaller providers into the market. We will be watching that closely, as I know he will, because we would all welcome a broader diversity of suppliers.
The hon. Gentleman made a good point about the relief being gamed, and ensuring that it is targeted specifically at new fibre deployments. That was raised in the Commons stages by my right hon. Friend the Member for Wantage (Mr Vaizey), and indeed in the other place by Baroness Harding of Winscombe. I am pleased to tell the hon. Gentleman that, following those exchanges, my Department worked extensively with Gamma Telecom and Ofcom to conduct a detailed study of the potential for the relief to be gamed. The results of that analysis clearly support the conclusion that, based on the evidence available to date, neither the Government nor Ofcom expect the rate relief for new fibre to give rise to gaming in the system. Without going into the details, simply the cost of deploying new fibre, withdrawing dark fibre, opening up the ducts and then reconnecting everything would in almost all cases be more expensive that the saving from business rates.
The hon. Gentleman mentioned other measures in the Local Government Finance Bill and the importance of ensuring that we have a business rates system that supports economic growth. I wholeheartedly agree with him and am keen to use the opportunity for the business rates reset, the revaluation and the fair funding formula to ensure that our financial system does indeed support local authorities in their aspirations to grow their local economies.
I put on record my thanks to Members in the other place and, of course, the officials who brought me up to speed on the legislation incredibly quickly. I also thank my predecessor in this role, my hon. Friend the Member for Nuneaton (Mr Jones), who did so much to get the Bill to the point at which we are in a position to approve it. As I have said, demands on broadband are doubling every couple of years. It is vital that we stay ahead of that need and move quickly to implement the relief scheme that has been promised. I am delighted that we are making good progress on the draft regulations, which will be implemented swiftly. I am grateful to Members in this House and in the other place for the swift progress we have made. This is only one small part of the Government’s strategy, but it is an important one called for by all stakeholders.
Lords amendment 1 agreed to, with Commons financial privilege waived.
Lords amendments 2 to 13 agreed to, with Commons financial privilege waived.