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The Minister for Data and Digital Infrastructure (Sir John Whittingdale)
It is a pleasure to serve under your chairmanship, Sir Christopher. I thank the hon. Member for Stirling (Alyn Smith) for obtaining the debate and setting the subject out in an extremely constructive fashion, which I think has been maintained throughout. I welcome the contributions from all Members present. As has been observed, we have been on a tour of the nations of the United Kingdom, although I must say that I miss the hon. Member for Strangford (Jim Shannon), who would normally be with us. As a result, we have not heard the voice of Northern Ireland, but we have covered the rest of the UK comprehensively.
A number of points were made in detail about the situation in the constituencies of hon. Members, and as much as I can I will respond to some of the points raised. I will make a few general comments to begin. I add my own congratulations to the hon. Member for Ceredigion (Ben Lake) on his recent wedding, and indeed to the hon. Member for Rhondda (Sir Chris Bryant)—although I am not quite sure that it is the same degree of congratulation—on shadowing me on the Opposition Front Bench. Nevertheless, my congratulations to him on his promotion.
As has been said throughout this debate, and as is certainly recognised by the Government, broadband is now an essential part of life. It will go on being so as more and more services are provided online. That does not mean to say that we must neglect those who do not have access—that still remains important. I will say a word about digital exclusion, which was mentioned, but broadband is an essential. The Government have set ambitious targets, and I agree with the observation of the hon. Member for Inverclyde (Ronnie Cowan) that the appetite for broadband speed will go on increasing. That is why the Government shifted from originally having a target of superfast roll-out, which is relatively modest compared with the gigabit ambition of 1,000 megabits per second. That is about futureproofing. It is about ensuring that as more and more technologies and services become available, the connection is already in place to allow people to take advantage of it and for the economy to grow as a result.
Project Gigabit, which has been the main focus of this debate, is a £5 billion investment to support nationwide gigabit-capable broadband. As has been mentioned, we have set a target of 85% coverage by 2025 and nationwide coverage by 2030. In response to the requests made by the hon. Members for Rhondda and for Llanelli (Dame Nia Griffith) for targets, we have set those two targets, but BDUK will respond in due course to the Public Accounts Committee in setting out a delivery programme, so there will be more detail on how we get there and how progress will be made. We have already made astonishing progress. Consider that in January 2019, gigabit coverage was 6%, and now—four years later—it is at 77%. That is an astonishing achievement. However, in a sense, the more we are successful in extending coverage, first, the more vocal are the complaints from the people who do not have it, which is perfectly understandable—
Liz Saville Roberts
Will the Minister provide further advice on the process of approving a pre-registered package request under the gigabit broadband voucher scheme? My understanding is that there is an element of uncertainty about that.
Sir John Whittingdale
I will come on to say a word about the gigabit broadband voucher scheme. To some extent, the Project Gigabit procurements have taken over from it, but if the right hon. Lady has a specific question, perhaps she would let me have the details, and I will be happy to supply an answer.
As I said, the main thrust of achieving the extension of coverage has been through the commercial roll-out, which has resulted from the competition that we have encouraged. Over 100 providers are now investing over £40 billion to roll out gigabit-capable broadband. We continue to believe that an active, competitive market—I will say a word about Broadway in a second—delivers the best results for consumers.
There will always be areas of the country where commercial roll-out is not viable, and it is in the first instance to address those elements that Project Gigabit was established. It includes local procurements, regional and cross-regional procurements, and the gigabit broadband voucher scheme. A large number of companies are now involved, and we are signing procurement contracts regularly. We have so far awarded 12 Project Gigabit contracts to improve digital connectivity in Cornwall, Cumbria, Norfolk, Suffolk, Hampshire and Northumberland, and we have a further 24 local and regional procurements under way. I was delighted a few weeks ago to visit Orford in Suffolk, where £100 million is being spent under Project Gigabit to extend coverage to another 80,000 premises. In Norfolk, £114 million is being spent to extend coverage to 62,000 premises. That is being mirrored across the country. As I said earlier, however, we are conscious that that will still leave some people outside the scope of those procurement packages, and they will obviously continue to press for coverage to be extended to them. As we extend coverage, the remaining premises will be, almost by definition, in harder-to-reach areas, so reaching them may require more innovative and inventive solutions, but the 100% target is a real target and we are confident that it can be achieved.
I want to say a little about Scotland, because the debate was obtained by the hon. Member for Stirling. As he will know, 71% of premises in Scotland can now access a gigabit connection, and 96% can access a superfast connection of 30 megabits per second. I am pleased to tell him that 93% of premises in his constituency now have access to superfast speeds, and 56% can access a gigabit-capable connection, which I think is a little higher than the figure that he quoted from the House of Commons Library. The figure I have been given is 56%, which I hope is correct and perhaps a little more up to date—demonstrating that we are extending the degree of coverage by the day. Considering that in January 2019 the figure for his constituency was 1%, I hope he will recognise that that is a significant achievement.
We are working closely with the Scottish Government on the issue. I recently had a call with Scottish Government Minister Richard Lochhead to discuss the programme being conducted by the Scottish Government through the R100 initiative. R100 was perhaps ambitious, in that it set a target of 100% coverage by 2021. Obviously, that has not been achieved and some procurements still have to take place, but we are anxious to work along with the Scottish Government and the testing of the market for those procurement contracts is now under way. Stirling has also benefited from the gigabit voucher scheme, with 120,000 vouchers issued so far under the scheme and its previous iterations.
Emma Hardy
Before the Minister’s speech concludes, will he address the specific problems we are facing in Hull? Can I push him again to agree to meet me and the other local MPs to discuss these issues in more detail, so that we can hopefully find a way to get Ofcom to take this problem more seriously?
Sir John Whittingdale
I will come to the particular points that the hon. Lady raised and, indeed, points raised by other Members during the debate, so I am not trying to duck those at all.
Wales has featured strongly in the debate. As hon. Members from Wales will know, we are launching a cross-regional procurement, covering north-west Wales, mid-Wales and south-east Wales, and are looking to have a further procurement next summer for south-west Wales, and I will say a little bit more about that.
I turn to some of the specific contributions. My hon. Friend the Member for Meon Valley (Mrs Drummond) has been extremely persistent in making the case for her constituency. She will be aware—indeed, she referred to the fact—that a contract worth £104 million has been made with CityFibre, which will benefit around 76,000 premises in Hampshire, a number of which will be in the Meon Valley. I know she wants a date for when that will be achieved, but we have signed that contract, and I will ensure that BDUK continues to keep her updated with any progress. The signing of the contract is good news and hopefully her constituents will be able to benefit very soon.
My hon. Friend mentioned digital exclusion. As I said, I absolutely share her recognition of the importance of ensuring that people who may struggle to take advantage of digital technology are able to do so. We work with the Department for Education to ensure that essential digital skills for adults are made available through a number of different programmes and with the Department for Work and Pensions in supporting claimants with digital skills. She is absolutely right to press us on that point, and I will continue to keep in close touch with my colleagues in Government about that.
On the specific issue that the hon. Member for Kingston upon Hull West and Hessle (Emma Hardy) raised, competition is absolutely at the heart of the Government’s approach. We believe that it delivers for consumers, but I understand the frustration that she expresses. It is clearly not the intention that there should be three separate telegraph poles and cables alongside them, and we are conscious that the installation of such infrastructure is disruptive to people.
We have made it easier for operators to install equipment, but it is not the case that local communities no longer have any say. While individuals cannot impose conditions, local authorities can. They have to be notified of the intention to deploy infrastructure, and they can set conditions under which the operator has to comply when carrying out an installation. If those conditions are not complied with, the local authority needs to notify Ofcom, and Ofcom has the power to intervene. When it comes to the hon. Lady’s case in Hull, if operators are not abiding by the code of practice or the conditions that have been set, that is a matter that I would encourage her local authority or, indeed, the hon. Lady herself to take up with Ofcom because there are powers available.
Emma Hardy
Any conditions that are set do not appear to be mandatory—that is my understanding. This is the situation from both Hull City Council and East Riding of Yorkshire Council; my constituency covers both.
On the issue of Ofcom, I have to say that I have not found it at all effective in this area and I do not believe it is carrying out its full duties as a regulator in taking this matter seriously and taking action. I would welcome the Government getting behind this call to say to Ofcom that it needs to act and take the issue more seriously. I am so pleased that the Minister has agreed that it is simply unacceptable to have three different companies digging up the same street in the space of a year, putting their own poles in.
Sir John Whittingdale
Ofcom has powers to intervene if conditions are not being properly complied with. If the hon. Lady is dissatisfied with Ofcom’s response, I encourage her to contact them directly and come back to me, by all means, if she finds Ofcom is not responding in the way she would like.
As for the cases raised by the hon. Member for Westmorland and Lonsdale (Tim Farron), we are very much aware of the situation regarding the B4RN offer but, as he will be aware, BDUK has just signed the Project Gigabit contract in Cumbria, which is worth £180 million. It will extend coverage to 59,000 more premises in Cumbria and 10,000 of those are in his constituency. That is a significant increase. Obviously, there will still be some still outside that, and I hear what he says about the B4RN offer. However, an agreement was never reached with B4RN over its proposals. We will continue to talk to the hon. Gentleman about any concerns and I share his wish to ensure that the premises outside the procurement contract that has been signed still have the prospect in due course of accessing Gigabit. I invite the hon. Gentleman to continue to talk to the Department and to Fibrus about that.
The hon. Member for Ceredigion rightly raised the procurement contract for south-west Wales and pressed us to not drag our feet—I think that was the expression he used. We have no intention of doing that, but BDUK will let him know as soon as a successful supplier has been identified and will ensure that he is kept up to date. He also raised an important point about the public switched telephone network. I can assure him that nobody will have their existing connection cut off if they do not have access to broadband. I am very conscious of that.
The hon. Member for Llanelli made the point, which I think I have already covered, about setting out a timetable and targets. I agreed with a lot of what she said about the importance of ensuring that there is universal coverage and about the indispensability of broadband.
I want to come back on the point about affordability, which I am glad the hon. Member for Rhondda raised because it is important. We recognise that for some people broadband is an essential of life but nevertheless a significant cost to their budget. That is why we have been keen to get the agreement of all the operators to put in place social tariffs, which are now available for 99% of consumers. The challenge has been that take-up has not been anything like what we would like to see, with something like 200,000 out of a possible 4 million consumers taking advantage of social tariffs. I had a meeting this morning with colleagues at the Department for Work and Pensions to discuss how we could ensure that all consumers are aware. We are also talking to the operators about ensuring they publicise it as well. All I can say to those on low incomes who are worried about the cost is that they do not need to wait for a Labour Government, if one should ever appear, because this Government are taking the issue up and tackling it now.
Thank you for the opportunity, Sir Christopher, and I thank the hon. Member for Stirling. It has been a very valuable debate.