The Minister for Digital and the Creative Industries (Margot James)
I congratulate my hon. Friend the Member for Stirling (Stephen Kerr) on securing this important debate on community broadband schemes, which are valuable mechanisms that allow people to group together and work with operators to deliver broadband in their local areas. My hon. Friend is to be congratulated on his passion, his commitment and his knowledge of the issue of rural broadband.
I agree about the importance of supporting rural broadband, given how absolutely essential a decent broadband speed is for individuals to lead their lives today. Broadband is as important as any other utility, and it is fundamental to the country’s growth, prosperity and competitiveness.
The Chancellor has set ambitious targets for full-fibre, rather than copper, roll-out, aiming for nationwide coverage by 2033 and to ensure that at least half the country is covered by 2025. Rural broadband is a particular priority for this Government, and we are focused on ensuring that the whole UK, including Scotland, benefits from this new strategy.
Everyone should be able to participate in our digital society to use Government services, to complete homework, to communicate with family and to work in the digital age. Of course, future opportunities and benefits from remote healthcare and learning, and technologies such as artificial intelligence and the internet of things, mean that 5G will have to be available to everyone in the future, no matter where they live or work. That will also depend on fibre roll-out. The Government are working hard to make sure that that happens.
We published the future telecoms infrastructure review in July 2018, setting out a national long-term strategy for digital connectivity to meet the Government’s full-fibre target. I agree with my hon. Friend on the definition of what we mean by a full-fibre connection. We do not mean a hybrid version; we mean fibre to the premises. I sympathise with what he said about what I agree is misleading advertising.
We recognise in our strategy that although commercial investment will deliver in most parts of the country, there is a case for Government support for investment in those areas where a commercial solution is highly unlikely to be found. We are committed to reaching those rural areas first, in what we call the outside-in approach. Those living in such areas—around 10% of the country—will be able to benefit from gigabit connectivity at the same pace as the rest of the country with public investment. Everyone should be able to benefit from world-class connectivity, and we are committed to nobody, and no part of the country, being left behind.
We have made good progress. The £1.7 billion Broadband Delivery UK superfast programme has provided access to superfast broadband for 4.75 million homes and businesses that would otherwise not have got such connectivity, and we have now reached 95% access to superfast broadband for the country as a whole. I recognise that that still means that 5% of the country, an above average amount of which is in rural areas, is still waiting for superfast connectivity.
Despite the success we have enjoyed, there is a tough challenge in remoter areas, including parts of my hon. Friend’s constituency. As he said in his eloquent speech, there is clearly more that our Government, and indeed the Scottish Government, can and should be doing. The Government have invested more than double the per-head funding for the superfast programme in Scotland compared with England, which has enabled Digital Scotland to provide superfast access to 93.7% of premises in Scotland.
As my hon. Friend said, we are investing £200 million in the rural gigabit connectivity programme that was announced in the Chancellor’s Budget a few weeks ago. The programme will bring full fibre to remote and rural areas, delivering improved connectivity that is reliable, gigabit-capable and future-proofed. It will mean that people living in rural areas will no longer have to put up with slower speeds than those in urban areas. That will provide the connectivity that businesses in rural areas need to survive and thrive, and the recent evaluation of the superfast programme showed a combined increase in turnover of £9 billion for local businesses that benefited from that roll-out.
The rural gigabit connectivity programme will trial models for local hubs in rural areas, starting with primary schools, alongside vouchers for funding full-fibre connectivity to tens of thousands of homes and businesses across the UK, which will benefit from a fibre spine that will enable gigabit-capable connections. The project will be delivered directly through providers, and that applies to the money that is being made available to Scotland as well. We will work with agencies, including the Scottish Government, to identify suitable schools and public buildings, but the money will go to providers, not the Scottish Government directly. The public buildings will likely be in areas that are sparsely populated and mostly rural, including the borderlands, as well as Cornwall and the Welsh valleys. Community broadband schemes can play a valuable part in improving connectivity in such rural areas, particularly by driving innovation and participation locally.
My hon. Friend detailed unsettling accounts of the bureaucratic difficulties that have been posed to community operations that seek to benefit from the community broadband project schemes. I congratulate his constituents David Johnston and Richard Harris on persevering against the odds to establish the Balquhidder community broadband project. I also congratulate them on winning the Scottish rural action transport and infrastructure award for 2018 for their fantastic efforts. This really should not be as difficult as my hon. Friend has detailed.
I have something encouraging to say. We constantly work, through the very good barrier-busting taskforce that we have established in the Department, to break down barriers in rural areas. We have worked to give providers greater rights to access land and a fairer price for exercising their wayleaves, and we are considering introducing legislation on reinforcing wayleaves’ rights of access and new builds, so we recognise what my hon. Friend has said and we are taking action. As a precursor to legislation, when parliamentary time permits, the barrier-busting taskforce has issued a lot of guidance to local bodies and providers on how to use the changes in rules that we have at least overseen in the past 18 months.
Community broadband schemes play a very valuable role, and we want to encourage community networks. We have published guidance on our website to help to support those who are interested in following this route. We do recognise the challenges and complexities, and we want to work with partners to ensure we are able to mitigate risks and challenges, particularly in places such as rural Scotland and the Welsh valleys. All that builds on our £290 million investment into the local full-fibre networks programme and the gigabit broadband voucher scheme. They have already benefited many rural areas and aim to catalyse the commercial roll-out of full-fibre broadband. Both programmes are UK-wide, and I am pleased to say that we have already seen a high level of engagement with the programmes in Scotland. The Aberdeen and Aberdeenshire area was selected as one of our market test areas for the gigabit broadband voucher scheme, and the highlands made a successful bid for £4.7 million in the first round of the challenge fund. These interventions will help further to reduce the footprint of the R100 programme. We welcome the Scottish Government’s commitment to that programme, and officials are working closely to ensure that the R100 superfast ambitions can align with sand support our full-fibre ambitions.
As well as this vital work to deliver connectivity that is fit for the long term, we have also introduced the broadband universal service obligation, which will ensure that, by 2020, everyone across the UK has a clear, enforceable right to request high-speed broadband of at least 10 megabits per second. The USO is designed as a safety net and will at least ensure that no one has to wait to access Government services and to start to take part in our digital society, but the target of delivering nationwide full-fibre coverage by 2033 is challenging and will require industry, the UK Government and the devolved Administrations to work together. The fact that we successfully hit our target of 95% superfast coverage is a huge credit to the hard work, skill and commitment of the Broadband Delivery UK team and all our partners, including Digital Scotland, and I thank them. I also commend my predecessors in my current role: my right hon. Friend the Member for West Suffolk (Matt Hancock), the former Secretary of State; and my right hon. Friend the Member for Wantage (Mr Vaizey).
I again congratulate my hon. Friend the Member for Stirling. I look forward to hearing more about the success of the community project he spoke about in the House today, and to building on that success and encouraging other community projects to take inspiration from his constituents.
Question put and agreed to.