BBC Transparency

Matt Hancock Excerpts

Thursday 7th September 2017 Westminster Hall

[The Minister for Digital (Matt Hancock)]

It is a pleasure to serve under your chairmanship, Mr Bone. I am so sorry to have kept you away from the debate on the withdrawal from the European Union—a subject that I know is very close to your heart.

I would like to thank the hon. Member for East Londonderry (Mr Campbell) for securing this important and over-subscribed debate about transparency in and of the BBC. He gave a number of examples of concerns with the BBC, many of which relate to specific accusations within BBC Northern Ireland. I am sure that the BBC has heard his concerns loud and clear; he was certainly transparent about his frustration. I understand that the BBC has offered to meet him, and I encourage him to take up that offer, but I also encourage the BBC to respond in substance to his concerns.

As many Members have said, the BBC is one of our most treasured institutions. I declare no financial interest, but I do declare that I love the BBC and think it is a very important British institution. It is an engine for creativity and growth, and I am proud of its role here and around the world.

The BBC receives £4 billion of public funding every year through the TV licence fee, which is a tax. As my hon. Friend the Member for Taunton Deane (Rebecca Pow) said, the BBC, as a public service broadcaster funded by the public, must be as open and transparent as possible. The public rightly expect the BBC to be scrutinised effectively and to know how it spends our money—and I say “our” not as a Minister, but as a licence fee payer.

I strongly support the transparency that has been brought to the BBC through the charter settlement. It will improve the BBC and bring it into line with other public services, other parts of Government and, indeed, our politics, which has got radically more transparent in recent years. Improving efficiency and transparency was central to the charter review, and we have insisted on a whole series of changes in the charter to address these issues.

I agree with those who said we were right to introduce that transparency. Alongside it was effective, modern governance. It will be the responsibility of the new BBC board to deliver further transparency and greater efficiencies across overheads, including what needs to be done to lower the pay bill, where appropriate. The National Audit Office has become the BBC’s financial auditor for the very first time, as it is for the rest of the public sector. It will be able to do value-for-money studies on the BBC’s commercial subsidiaries, which return profits to the BBC, thereby generating public money. Of course, Ofcom is now independently regulating the BBC. A point that was brought up and has strong cross-party agreement is that it is important that an independent regulator regulates the BBC.

I was surprised at the comments of the hon. Member for Keighley (John Grogan), and by the Labour Front Bench’s opposition to seeing more diversity and distinctiveness at the BBC: we have had complaints by the Labour party about our calls for more diversity in the BBC. Of course I have a view on the level of diversity in the BBC, and I just wish the Labour party would join in. Where I do agree is that the BBC needs to look at pay across the piece, at all levels. I had much more sympathy with the point made powerfully by the hon. Member for Ellesmere Port and Neston (Justin Madders) about the powers to insist on transparency for the BBC in other areas of diversity.

[Kevin Brennan]

On a point of order, Mr Bone. I think the Minister might have inadvertently misled the House by saying that the Labour Front Bench, during the course of the debate, had opposed levels of diversity within the BBC.

[Matt Hancock]

I did not say that it did so during the debate. It did when the deputy leader of the Labour party, the hon. Member for West Bromwich, wrote to us attacking our insistence on more diversity at the BBC. Maybe the hon. Member for Cardiff West (Kevin Brennan) needs to have a word with his colleague and try to bring him into line. We are in favour of more diversity. At the moment, the Labour party is not, and I suggest it does something about that.

[Mr Peter Bone (in the Chair)]

That was a point of order. Is the hon. Member for Cardiff West (Kevin Brennan) satisfied?

[Kevin Brennan]

indicated dissent.

[Matt Hancock]

I think the hon. Gentleman needs to go and sort that out with his colleague. The hon. Member for Ellesmere Port and Neston made—

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

On a point of order, Mr Bone.

[Matt Hancock]

We do not have any time.

[Mr Peter Bone (in the Chair)]

It is a point of order. I have to take it.

--- Later in debate ---

[Mr Bailey]

Just to correct the Minister, the deputy leader of the Labour party is the hon. Member for West Bromwich East (Tom Watson). I am the Member for West Bromwich West, and I would like no confusion.

[Matt Hancock]

I said West Bromwich because when I got to the end of saying it, I could not remember which I was referring to, but I was indeed referring to West Bromwich East.

Anyway, Ofcom has powers to insist that the BBC be transparent, and the charter gives Ofcom specific powers to consider the distinctiveness of music output on Radio 1 and Radio 2—not just the number of plays, but the size of the playlist and whether it is a peak or off-peak time. I suggest that the hon. Member for Ellesmere Port and Neston takes his point, which has a lot of merit, up with Ofcom, because it has those powers; the Government do not, for the reasons discussed during the debate.

The Government also require the BBC to disclose details on staff and talent where salaries are over £150,000. That was the meat of the debate today. The latest pay disclosure really shines a light on some practices that have been going on for a long time in the BBC, and not least on the gender pay gap, as discussed. I am very proud that we have introduced mandatory gender pay gap reporting for organisations with more than 250 employees, because that will help the organisations. I have an awful lot of sympathy with the statement put out by BBC women yesterday, which said:

“The Director General must be in no doubt about how serious an issue equal and fair pay is for women across the organisation. The BBC should be the standard-bearer for this.”

That is incredibly important. In fact, I think that on issues of diversity and gender equality, we should hold the BBC to a higher standard, if anything, than other organisations, because it literally reflects the nation and broadcasts to the nation.

All of us who cherish and support the BBC must strive to make it more transparent and hold it to account. That does not weaken the organisation; it improves an organisation, because where there is a problem, sunlight is the best disinfectant. My hon. Friend the Member for Eastleigh (Mims Davies) asked powerfully what further will happen on transparency. Mandatory gender pay gap reporting for the BBC, as well as for other organisations, is due by April next year, and we expect the BBC to take action to close that gap, which it says is 10%.

Of course, it is not just about the gender pay gap. As my hon. Friends the Members for Taunton Deane and for Clacton (Giles Watling) said, it is about the level of pay. It is also about equal opportunities—people from black, Asian and minority ethnic backgrounds are under-represented among the BBC’s top earners—and transparency on social mobility, as the hon. Member for Ellesmere Port and Neston set out.

The BBC should be leading the way. I welcome the director-general’s commitment to closing the gender pay gap by 2020. I was pleased to hear yesterday about his plans for an independent equal pay audit of all BBC staff in the UK and a separate report on the gender pay gap. I look forward to seeing those reports in the coming months and expect to see an improvement on the gender pay gap and diversity in the next set of BBC accounts.

Transparency is the order of the day in this debate, so I am delighted that we heard of the music talent on the Labour Front Bench. I am sure that the hon. Member for Cardiff West is regarded by viewers of the Dave channel as top talent, and maybe one day we will see his name in the transparency returns. I agree with him on the importance of impartiality at the BBC and with his robust defence of the BBC against the accusations from some Scottish National party Members. I conclude today’s debate by thanking all Members for their lively contributions. I am sure that the BBC will be listening, and I am sure also that we will return to these important topics many times.

Telecommunications Council

Matt Hancock Excerpts

Tuesday 18th July 2017 Written Statements

[The Minister for Digital (Matt Hancock)]

The EU Council of Ministers’ Telecommunications Council took place in Luxembourg on 9 June 2017. Due to the timing of the general election, the UK’s Deputy Permanent Representative to the EU, Katrina Williams, represented the UK at this Council. As is procedure, this statement sets out a formal record of that meeting.

The first item was a progress report and policy debate on the following two legislative instruments:

Proposal for a directive of the European Parliament and of the Council establishing the European Electronic Communications Code (Recast); and

Proposal for a regulation of the European Parliament and of the Council establishing the Body of European Regulators for Electronic Communications.

The Council adopted a general approach on the regulation on cross-border parcel delivery services. There was a qualified majority in favour.

The last main agenda item was the ePrivacy regulation, on which there was a progress report. There was no substantive debate on this item.

These items were followed by information points on: the roaming regulation; internet connectivity in local communities (known as ‘WiFi4EU’); the Digital Single Market Strategy; cybersecurity; and the Commission’s EU Digital progress report.

Finally, the Estonian delegation informed the Council of its priorities for the Estonian presidency, beginning on 1 July 2017.

[HCWS63]

Education, Youth, Culture and Sport Council

Matt Hancock Excerpts

Tuesday 18th July 2017 Written Statements

[The Minister for Digital (Matt Hancock)]

The Education, Youth, Culture and Sport Council took place in Brussels on 22 and 23 May 2017. A separate written statement is being tabled by the Department for Education concerning the Education Council. The Minister for Digital represented the UK at the culture section of Council and Katrina Williams, the UK Deputy Permanent Representative to the EU, represented the UK at the youth and the sport sections of the Council. As is procedure, this statement sets out a record of that meeting.

Youth

There were two items adopted at the Youth Council. The first pertained to draft conclusions on the role of youth work, which the UK supported, and the second which pertained to EU youth strategy, which again the UK supported. In addition there was a resolution on the structured dialogue with young people, which the UK adopted. Furthermore, the Commission pointed to the publication on 30 May of the proposed European Solidarity Corps regulation (a priority of President Juncker) which is designed to broaden the narrow focus of helping young people find employment through volunteer placements. In the policy debate on building Europe’s future, Ministers highlighted the need to deepen involvement of young people through effective dialogue and via long-term commitment to funding Erasmus Plus. Finally, there was information from the incoming Estonian presidency, which stated that it would focus its work programme on “smart youth work” via digital means.

Culture

The Council held a minute’s silence to commemorate the victims of the Manchester bombing, with all Ministers expressing their condolences to the UK, and many noting that the attack had taken place at a cultural event.

The main item at the Council was the audiovisual media services directive. The presidency explained why it believed its compromise text to be well balanced and it was made clear that a general approach would be sought at this Council. The UK was firm that the weakening of the country of origin principle remained the main outstanding concern. There was an initial attempt to find a qualified majority with which to support the file, however this failed. As a result, amendments were made to the text on the issues of scope and jurisdiction criteria, and a general approach was agreed, without the support of the UK. This matter will now proceed to trilogue.

In addition, the draft Council conclusions on an EU strategic approach to international cultural relations was also adopted, with the agreement of the UK.

Sport

The Council adopted two conclusions, one regarding Council conclusions on sport as a platform for social inclusion through volunteering, and the other regarding the EU work plan for sport. The UK agreed with the adoption of both sets of conclusions. In addition, there was feedback from the World Anti-Doping Agency meeting in Montreal and France presented on their candidacy to host the 2024 Olympic games. There was also a discussion on social inclusion in sport with a presentation from the Premier League. The UK underlined its work to promote inclusion through social media campaigns and major events such as the Paralympics.

[HCWS61]

Catfishing and Social Media

Matt Hancock Excerpts

Tuesday 18th July 2017 Westminster Hall

[The Minister for Digital (Matt Hancock)]

I congratulate the hon. Member for Stockport (Ann Coffey) on securing the debate. I know that this is an important issue for her and for her constituent, Mr Peacock. I am glad that she has brought it to the attention of the House, and I welcome the opportunity both to raise awareness of the problem and, as she has done, to set out clearly the legal position and what might be done about it.

The UK is a world leader in the fight against online abuse, exploitation and harmful content. We take the approach of working in partnership with the technology industry, using legislation where necessary, and we also work with groups across society to ensure that behaviour that would not be tolerated offline cannot thrive online. That is the principle that underpins the internet safety strategy, which is part of the wider digital charter that the hon. Lady mentioned. I listened to her contribution, and I will endeavour to address all the points that she raised in my response.

I will start by saying that I agree with her about the vital need to balance freedom and responsibility online, so that we can enjoy all the benefits of the internet but try to mitigate the harms and harmful practices that the internet has allowed to come about.

[Mr Jonathan Lord (Woking) (Con)]

Like the Minister, I first pay tribute to the hon. Member for Stockport (Ann Coffey) for an absolutely superb exposition not only of her constituent’s case but of the wider situation.

Members listening to and participating in this debate would like the Minister to address a couple of points. First, there is no excuse whatsoever for people taking someone else’s identity online. Such behaviour is reprehensible and creates two potential victims. The hon. Member for Stockport outlined how the law has proved to be absolutely deficient so far in this area. I am not one for jumping to legal remedy, but the lack of legal redress for her constituent is obvious, and the Government need to look at that situation carefully and sympathetically.

[Matt Hancock]

That is an important point, and I will come on to it later.

The internet brings benefits, but also the new challenges that we are considering. The central point is that fraud, whether it is committed online or offline, can cause serious damage, and fraud includes identity theft. Victims can suffer both financial and emotional harm, and we know that fraudsters not only make money but exploit social relationships. Both those things need to be taken seriously.

The Fraud Act 2006 already includes offences that would apply to anyone who assumes a false or non-existent identity to commit fraud. In particular, section 2 sets out the crime of fraud by false representation, which would cover a person pretending to be someone else for the purposes of making a gain for himself or another. That obviously applies in the online world, too. The use of a false identity for fraudulent purposes is a crime, but identify theft in and of itself is not a criminal offence, which speaks to the point that my hon. Friend the Member for Woking (Mr Lord) raised about taking someone else’s identity. That is the situation as we find it.

Perhaps I should go through some of the things the Government are considering to try to address the problem. First, there is the question of raising awareness of identity fraud. Identity fraud and wider cyber-crime are important issues. We need to ensure that people understand the safer behaviours they can use online. The hon. Member for Stockport mentioned the UK Safer Internet Centre and Get Safe Online, which provide advice on relationship scams and online dating issues. Get Safe Online is an independent organisation funded by industry and Government to ensure that there is a place to go for high-quality advice. Often even basic research, such as checking social media sites or using search facilities, can help in checking whether a person is actually who they say they are.

We expect websites, including social media companies, to respond quickly to reports of harmful content and abusive behaviour on their networks. That includes having easy-to-use reporting tools and robust processes in place to respond promptly when abuse is reported, including the suspension or termination of the accounts of those who do not comply with acceptable use policies. As the hon. Lady said, social media companies are taking some action using people and artificial intelligence, but it is clearly not solving the whole problem.

We have taken action to tackle online harms through legislation where necessary, including in relation to cyber-stalking, harassment and perpetrators using grossly offensive, obscene or menacing behaviour. We have introduced a new law making the fast-growing incidence of revenge porn a specific criminal offence, which is what the hon. Lady is seeking. The most relevant legislation is the Malicious Communications Act 1988, which contains the offence of sending material, including electronic communications, to another person that is false and known or believed to be false by the sender, with the purpose of causing distress or anxiety to the recipient or any other person to whom it is intended to be communicated. The Criminal Justice and Courts Act 2015 made changes to that offence, and to section 127 of the Communications Act 2003. The changes were aimed at ensuring that people who commit those offences are prosecuted and properly punished. Where there is emotional abuse, it might be captured under the domestic abuse offence of controlling or coercive behaviour. That is the legal position.

The Crown Prosecution Service has revised its guidelines on social media to incorporate new and emerging crimes being committed online. Advice was added to the guidelines about the use of false online profiles and websites with false and damaging information. For example, it may be a criminal offence if a profile is created under the name of the victim with fake information uploaded that, if believed, could damage their reputation and humiliate them. Whether the CPS prosecutes any offence will depend on it meeting the evidential and public interest tests in the “Code for Crown Prosecutors”.

The Digital Economy Act 2017 requires us to publish a code of practice for social media companies. We have not yet published it, but we are required to, so we are working on it. The code of practice will include guidance on arrangements for notification by users; the process for dealing with notifications; terms and conditions in relation to those arrangements and processes; and the giving of information to the public about the action providers take against harmful behaviour. We will be consulting on that shortly.

The hon. Lady said that no one is seeking to end anonymity. It is interesting that on some social media sites anonymity is not allowed or made very difficult, but that is not true across the board. For instance, we welcome Facebook’s real name policy, which requires all its users to provide their real and full name when signing up. Claiming to be another person, creating a false presence or creating multiple profiles goes against Facebook’s terms and conditions, but that is not the case for all social media sites. Policing such things is incredibly important, but there is collaboration between social media sites and dating sites to link up online presences. For example, Tinder allows users to link their accounts with other forms of social media, such as Facebook or Instagram. That can help, and we welcome such things, but it is not necessarily for Government to tell social networks how their facilities should work. The very nature of social networks is that they are designed for people to share information, but all social networks are expected to act responsibly to protect the privacy of users. Getting the balance right between freedom and safety online is a key part of the internet safety strategy and the digital charter.

[Mr Lord]

I have been listening carefully to the Minister’s remarks. A minute or so ago, I think he said that if the victim—in other words, the person whose identity has been stolen—has reputational damage, that is potentially a criminal offence. I cannot think of anything worse than that damage. In this case, it was proven that this man’s identity was taken and that multiple women—perhaps many women—were contacted and asked for graphic and sexual images of themselves.

[Mr Lord]

I see the hon. Lady is nodding. Either the law is deficient, or the police and the CPS are giving the wrong advice to her constituent. Things need to be tightened up.

[Matt Hancock]

As I said, the CPS guidance in this area has been updated, because technology moves fast and the CPS has to update its guidance and interpretation of the law from time to time. My hon. Friend is exactly right in what he said and in reporting what I said, which will be in Hansard, but I said it as a conditional—such activity could be a criminal offence, because it depends on potential prosecutions. It is not for this place to determine guilt or innocence; it is for this place to determine what the law should be.

The guidance was updated fairly recently, and we need to see the impact of that, but my hon. Friend should rest assured that we put in place the internet safety strategy to look broadly at the impact of the internet and ensure that we protect the freedom, innovations and magnificent improvements that it brings to many areas of life, while doing that in a safe way that protects people from harm. Freedom exists within a framework of protecting others from harm, hence why the internet safety strategy will look into all these issues. Since I am responsible for that strategy and have heard the debate today and looked into the case in preparing for the debate, I will ensure that the issue of catfishing is considered.

There have been movements in this area, and I look forward to working with the hon. Member for Stockport and my hon. Friend the Member for Woking to ensure that the victims of catfishing, who can suffer both financial and emotional harm, have their voices properly heard. They need a strong response to ensure that the law is properly and appropriately up to date to deal with the challenges that the internet has brought in this area and in this case. We have to learn the lessons. I hope that I have provided assurance that we take harm caused online extremely seriously, and I look forward to working with the hon. Lady to find the solution.

Question put and agreed to.

Digital Economy Act Commencement

Matt Hancock Excerpts

Monday 17th July 2017 Written Statements

[The Minister for Digital (Matt Hancock)]

In April this year, Her Majesty the Queen gave Royal Assent to the Digital Economy Act 2017. The Act introduced measures to help consumers access broadband, build digital infrastructure, protect children from online pornography and enable better public services using digital technologies.

A number of important provisions in the Act have already come into force. These include powers on broadband USO, switching, automatic compensation and information powers to help consumers accessing electronic communications services, protection for citizens from nuisance calls and others.

I can today inform the House that the Government have made the first commencement regulations to bring into force a considerable number of other sections of the Act.

We have taken steps to implement the new age verification requirement for online pornography as part of our continuing work to make the internet safer. The new scheme is complex and will not be fully in place until April 2018, but today we are bringing into force powers to designate the regulator and powers to allow guidance to be issued.

We are also bringing into force measures to improve digital connectivity across the UK, starting the implementation of the new electronic communications code to assist operators to develop new infrastructure, putting in place planning reforms and giving powers to allow Ofcom to make better use of radio spectrum to improve mobile connectivity.

We have also started the process of implementing the measures in the Act that allow the Government to make better use of data. Powers to allow HMRC to share non-identifying information in the public interest will come into force and help deliver more effective and efficient public services. We will also bring into force the information sharing arrangement with the Employers’ Liability Tracing Office to help those who have suffered personal injury as a result of employment to trace liability insurance policies. New provisions to enable public authorities to share information with the UK Statistics Authority will also commence.

Finally, to help consumers better manage their bills, we will commence powers to require mobile operators to offer bill limits to all their customers. To allow operators time to adapt their systems and processes, I am today announcing that the requirement will come into force from October 2018.

Commencing these provisions marks another significant milestone towards implementing the Digital Economy Act 2017 and delivering our digital strategy.

[HCWS51]

Telecommunications Infrastructure (Relief from Non-Domestic Rates) Bill

Matt Hancock Excerpts

2nd reading: House of Commons
Monday 10th July 2017 Commons Chamber

[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?

--- Later in debate ---

[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.

--- Later in debate ---

[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.

[Matt Hancock]

It is a serious frustration and we will use the powers.

[Andrew Gwynne]

rose—