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The Minister of State, Department for Digital, Culture, Media and Sport (Julia Lopez)
It is a pleasure to serve under your chairmanship, Dame Angela. I thank the hon. Member for Westmorland and Lonsdale (Tim Farron) for securing this very important debate and for making what I thought was a compelling speech. I wish today to assure him, for the very same reason: we want to do the right thing for his constituents and for all residents and business owners in rural and hard-to-reach areas. We want to make sure that they are not left high and dry in the nationwide gigabit upgrade.
The hon. Gentleman highlighted that access to high-speed broadband is important for schooling, for businesses and for building communities in more rural areas, and we all understand this from the very difficult past 18 months. I know that that determination is shared by my hon. Friend the Member for Penrith and The Border (Dr Hudson) and other colleagues in the Chamber today, including those from the highlands. The Prime Minister promised to end the spinning wheel of doom and he keenly follows the progress we are making to connect the country to lightning fast, reliable gigabit broadband. I will set out some of the progress we have made before I turn to the situation in Cumbria.
Working with Ofcom, we have given the commercial market a long-term framework that supports investment in gigabit broadband. We have reduced the barriers to roll-out, alongside further legislation that will help even more with issues such as wayleaves where we can get the infrastructure laid. We have also introduced active incentives for financial investment. As a result, our plan is working and gigabit-capable broadband is rolling out rapidly. Since January 2019, the UK’s gigabit-capable coverage has increased from 5.8% to nearly 50%, and that is expected to rise to 60% by the end of December. In addition, the Government and major providers’ joint investment of more than £1 billion is filling those gaps in rural 4G coverage.
There is a lot more diversity now in the broadband sector. I appreciate the hon. Member for Westmorland and Lonsdale’s comments about larger providers, such as Openreach, but our local full fibre networks and rural gigabit connectivity programmes have awarded contracts to multiple operators, many of them smaller providers such as Gigaclear, Airband, Fibrus, Axiom, Quickline, Truespeed, Full Fibre and Wessex Internet. Our gigabit broadband voucher scheme has suppliers actively providing connections to communities in rural areas in every part of the UK.
However, we have to accept—as we do—that the market will not go everywhere, which is why we are backing Project Gigabit with £5 billion so that hard-to-reach communities are not left out. That is how we want to level up and ensure that our rural communities have the same chances and opportunities as our urban towns and cities. We are adding to the half a million rural homes and businesses already covered by Project Gigabit, thanks to our support. Through Project Gigabit, the Government are going to provide support to ensure coverage is available to the final 20% of premises that the market will not reach. That is a considerable undertaking that is going to involve everybody, as my hon. Friend the Member for Penrith and The Border said. It is very important that we work together on that.
As part of Project Gigabit, we are investing more money—up to £210 million over the next three years—in gigabit vouchers. That builds on the success of the previous voucher programme that began in May 2019, which has subsidised the cost to connect more than 88,000 homes and businesses to gigabit-capable broadband so far. Our nationwide task is a lot larger, and if we are going to reach every home and business, the Government have to subsidise broadband networks to around 5 million premises. We have already made great strides with that objective, but we still have the most challenging parts of our four nations to reach. If we are going to get that done quickly, the lion’s share of the work has to be done through Government procurement contracts, working with both local and regional suppliers. I am very pleased to say that Cumbria is scheduled to be the first area to go into the procurement process. Provided that suppliers confirm the proposed project is viable, the procurement will get under way within the next few weeks.
While residents and businesses in Cumbria will be the first to benefit from our programme, it means the county is also at the forefront of our learning and understanding. Far from being cloth-eared, as I know the hon. Member for Westmorland and Lonsdale has stated in his local paper, I want to reassure him that we are listening hard to people’s concerns and we continue to be open minded about the best approach. I hope this debate is the opening of that conversation, certainly with me in my new role.
My officials have met B4RN several times and examined each project it has put forward in a lot of detail. I am pleased that the chief executive is here today and, in fact, I understand that my officials are going to meet him later today. Not only that; my excellent predecessor, my hon. Friend the Member for Boston and Skegness (Matt Warman), visited Cumbria last month and met communities in the midst of the broadband build. He also met B4RN and listened to the concerns, and I shall be happy to keep that conversation going.
I cannot stress enough how much the Department admires and applauds B4RN in its unique community-minded approach. As a network provider, it is almost unique in the UK. We do not want to dampen that enthusiasm or that business model. I have come from a position in the Cabinet Office where we were looking at how to transform the UK’s procurement regime now that we have left the European Union. One of our key drivers is looking to get more social value into the money the Government spend, as well as diversifying supply chains and encouraging small and medium-sized enterprises to get involved. I certainly do not want to crowd people out.
Residents involved in every one of B4RN’s projects tirelessly work to drum up support and interest and to persuade landowners to grant permissions to cross their land and so on. That is seriously impressive community work. I welcome that the vouchers have been used to provide coverage to 3,500 premises in Cumbria. I hope that that number will continue to grow, but our task—let us be honest here—is to help in the region of 60,000 premises, so the procurement approach has to do the heavy lifting when it comes to the Project Gigabit programme.
Tim Farron
I apologise for interrupting the Minister’s helpful speech. The 60,000 figure is very important, but does she recognise that as things stand, unless she defers the deadline for the voucher scheme on Friday, the communities that I have listed, which I got from B4RN, will be in limbo at the very least? While they could have looked forward to a connection very quickly, over the next year or so, they will now be at best put back several years. Can she not think of a way of doing both: of ensuring that she connects the 60,000 she talks about, while not dumping and pulling the plug on those communities that I just listed?
Julia Lopez
I appreciate the hon. Gentleman’s concern for those communities. We all appreciate the importance of broadband in those places. I think the best thing to do from this juncture is that the meeting between officials and Mr Lee goes ahead, and I ask for an update from that meeting and we talk about the best approach going forward.
My team in Building Digital UK has undertaken extensive work, along with the local authority teams in Cumbria and other areas, to get ready for the first procurements. A detailed consultation has been undertaken with the commercial market to identify the least commercial areas in which to subsidise build. That will ensure that taxpayers’ money is fully focused on levelling up the communities that would otherwise miss out. We know that some suppliers will be able to provide coverage more quickly with vouchers to communities where they are already active with projects. We will therefore accommodate that as far as we can in our approach.
However, not all planned voucher projects get off the ground and result in the intended coverage. It is important to ensure that the procurement process is ready to pick up those areas rather than leave anyone behind. We need to ensure that the existing voucher schemes really are credible. For that reason, we are structuring the procurement so that we do not slow down current voucher projects, while providing a back-up option through procurement so that residents and businesses do not miss out. It is about ensuring that there is a balance between supporting early coverage in areas where there are firm plans using vouchers, while ensuring that communities do not get left out and that we do not have to continually change the premises included in procurement. We need to ensure that those procurements are stable.
Jamie Stone
I am listening with great interest to what the Minister is saying. It is curious that no Scottish Members are present apart from myself, because the situation in Scotland is very patchy indeed with regard to broadband. May I cast a fly across the Minister? If it could be demonstrated by Her Majesty’s Government that the roll-out of broadband is highly efficient in such areas as Lakeland, would that not be a blow in favour of keeping the United Kingdom united?
Julia Lopez
I thank the hon. Gentleman for that important intervention, because the Union is so important to all of us in the Chamber. I want to do what I can in my ministerial role to support the connectivity of all four nations in our country.
As some of us have mentioned, the world is in the middle of a digital revolution and covid has accelerated that process, digitalising almost every part of our everyday lives and making the infrastructure that connects us more important than ever. That is why it is at the top of the Government’s agenda. As I mentioned, I will ask BDUK for an update from the meeting with Mr Lee in the coming days. I thank the hon. Member for Westmorland and Lonsdale for his very important and compelling speech.
Question put and agreed to.