Telecommunications Infrastructure (Relief from Non-Domestic Rates) Bill

Amanda Milling Excerpts

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

[Simon Hoare]

My hon. Friend says that she is relieved that it was something so entirely innocent and innocuous.

Fast broadband, which allows us to watch telly and order online, will of course help address rural isolation, which is particularly significant in an area such as mine. FaceTime and other mechanisms will help keep families together by keeping those intergenerational conversations going when geography means that a weekly visit may not always be appropriate, feasible or affordable.

Towns such as Sturminster are not unique. Glastonbury, which I think is in the constituency of my hon. Friend the Member for Somerton and Frome (David Warburton), has lost all of it banks—[Interruption.] I am sorry: Glastonbury is in the constituency of my hon. Friend the Member for Wells (James Heappey).

[Amanda Milling (Cannock Chase) (Con)]

My hon. Friend mentions banks on the high street. Several branches in my constituency have shut and one of the arguments I hear is that people can use online banking, which is the very reason we need to ensure that we have excellent broadband facilities.

[Simon Hoare]

My hon. Friend makes my point far better than I could. She is absolutely right. The town of Sturminster has lost two banks in the past year and will lose its third bank at the end of this year. Private and business customers are told that internet banking is available. That is fine, so long as the speeds and the service are reliable enough to allow them to remember why they logged on and which financial transaction they wanted to undertake. That situation is not unique to my part of the world.

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[Amanda Milling]

My hon. Friend and I both have residents and businesses that face the plight of HGV fly-parking. I know that she, too, is very passionate about this. Does she agree that, as technology advances, we should look at different ways of doing business?

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. I am sure that the hon. Member for Faversham and Mid Kent (Helen Whately) will find an ingenious way of relating the intervention by the hon. Member for Cannock Chase (Amanda Milling) precisely to the Bill. I can see a way of doing it and I am sure she will succeed.

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[Amanda Milling (Cannock Chase) (Con)]

It is an honour to follow my hon. Friend the Member for Boston and Skegness (Matt Warman), who is a real expert in this field, as he has demonstrated tonight. I have to admit that I am a technology dinosaur; when it comes to communications, if I have a choice between email, text or telephone, I will choose an actual conversation every single time. It takes an awful lot less time to pick up the phone and have a conversation one to one than to compose lengthy emails that often can take hours to construct by virtue of the need to check the content and tone, or to correspond via text messages; at present I have about eight text messages building up, and I will no doubt forget to respond to all of them.

I welcome this Bill, which provides business rate relief for new fibre infrastructure. Its measures form part of a wider package that rightly encourages investment in our country’s digital infrastructure and that helps ensure that Britain remains a digital world leader. The Bill will help homes and businesses across the country have faster, more affordable and more reliable broadband connectivity.

We have heard this evening from many Members who represent constituencies very different from mine. Many of their areas are very rural, and we have heard from them about issues of the connectivity of mobile and broadband in rural areas. My constituency is not like that: I have mainly towns and one large village—Cannock, Hednesford, Rugeley and Norton Canes. There is limited rural space in my constituency; my hon. Friend the Member for Aldridge-Brownhills (Wendy Morton) is one of my near-neighbours, and I see her nodding, as she recognises what my constituency is like.

I also have a forest in my constituency. If someone is driving through the forest of Cannock Chase and I, as a passenger, am having a phone conversation, the chances are that the phone call will cut off; I must add that I am on wireless, not Bluetooth. This is an issue in the more rural parts of my constituency. The measures in the Bill that make broadband and mobile access much better will be welcomed by people and businesses across the country, including in my constituency.

[Wendy Morton]

Does my hon. Friend agree that although her constituency, like mine, is not predominantly rural, we can still find notspots—not just in forests and so forth, but in the more built-up areas?

[Amanda Milling]

My hon. Friend is right, and I will come on to some specific issues later in my speech.

My office is on Market Street in the heart of Hednesford, yet when I am there, more often than not I cannot make telephone calls because I do not have any mobile phone reception. When I am travelling between my office and my home as well, invariably the mobile phone reception falls.

Why is broadband and mobile access so important? As Members have said, it is key to family and our daily lives. We can keep in contact with our friends across the world through Facebook and social media. We have talked about the closure of high street bank branches across the country because people are increasingly doing their banking online, but they need excellent online access to be able to do that. I am not sure that any Members have mentioned being able to switch energy suppliers. We talk about people trying to get better rates for their gas and electricity, and that is often best done by looking at online portals. If people do not have good internet access, the range of deals they can get is restricted.

We have talked about watching television, too. Personally, I just switch the TV on; that goes back to my being a bit of a dinosaur. Many people, however, use iPlayer and on-demand services. My mother, for instance, has never used a computer, but a few years ago we got her iPlayer and she is absolutely reliant on it for communicating with people and watching television, but she has to have excellent broadband access to do that.

I want to raise some specific issues in terms of broadband access and the roll-out of full fibre connectivity. A number of my constituents live on a new housing development called Chasewater Grange, and they complain of painfully slow broadband speeds. It is a new Taylor Wimpey development on the edge of Norton Canes. There are about 130 houses. Despite being billed as a superb collection of high-quality homes, with a mix of house types to suite a range of tastes, including three and four-bedroom homes, all with easy access to local amenities—which I fully support; they are fantastic, and it is a fantastic development—the one thing the local residents do not enjoy is fast and reliable broadband access.

On building a new housing scheme, developers install gas, electricity and water as a matter of course, but we are now in a time when broadband is the fourth utility. The provision of superfast broadband should be treated in the same way as the other utilities. The problem is not unique to Chasewater Grange. I have done quite a lot of research on this issue over previous days, and I have been reading endless reports of residents of new developments up and down the country facing similar issues.

My hon. Friend the Member for North West Hampshire (Kit Malthouse) is not in his place at present, but he made the point that this problem has been recognised, and last year an agreement was reached between the Government, Openreach and the Home Builders Federation to ensure that superfast and ultrafast broadband connectivity would be either provided free or co-funded by Openreach to new developments. This has been extended to all developments with more than 30 homes, and connection will be free. We rightly place emphasis on building new homes; we often talk about the issue in the Chamber. So I am pleased that there is recognition that broadband connectivity is as important as the other utilities. Homebuyers expect this.

The issue is particularly important in my constituency, because thousands of new homes are being built all the time. When I drive around the constituency, I never cease to be amazed by the number of new developments. In the Pye Green valley and in Brereton, where I live, homes are being built all the time, and we must make sure they have access to both the main utilities and also broadband.

The moves made by Openreach and the Home Builders Federation are good news, but they are not going to resolve the issues faced by the residents of Chasewater Grange. I was very pleased to learn last week that that community has made some progress in securing funding from both Openreach and Taylor Wimpey to complete the work to install the fibre-based broadband. However, the residents of Chasewater Grange still face a funding shortfall, and they are communicating at present with Superfast Staffordshire. I hope they succeed in securing some assistance to be able to bridge the gap and ensure that this fibre broadband is connected.

I hope that as a result the residents of Chasewater Grange will soon be able to enjoy the benefits of fast and reliable broadband, and be able to do their banking online, and that the teenagers will be able to do their homework online—I am sure that we would all agree that it is important that they can complete their assignments. I also hope that those residents who want to work from home will be able to do so. The issues relating to broadband speeds are not confined to Chasewater Grange. I know of homes on Sweetbriar Way, for example, that have been waiting years for this connectivity. I also have a small number of rural properties in my constituency, and they are still waiting, too.

I want to turn to a more positive aspect of fast broadband access. The redevelopment of the Rugeley B power station site will present opportunities to tap into existing superfast broadband infrastructure. The power station sits right alongside the west coast main line, which has the superfast broadband network running up the line. Similarly, the canal network in the area has that infrastructure. The power station site benefits from the railway line and the canals; it also has national grid infrastructure. I have described it before in the House as a connectivity crossover, and we need to make the most of it. It presents an ideal opportunity to attract high-tech businesses and advanced manufacturing that can make the most of the infrastructure.

The power station site is huge, and there will also be some homes on it. I have talked about the need to bring broadband infrastructure to the door in new housing developments. The superfast broadband line is very close to this development, and we need to make the most of it—not only for today but for future generations. There is a real opportunity to ensure that the regeneration of this power station site attracts the businesses that will create highly skilled, highly paid jobs for those future generations. As I have said before—and will probably say again to the Under-Secretary of State for Communities and Local Government, my hon. Friend the Member for Nuneaton (Mr Jones)—we need to have ambitious, bold and visionary plans for Rugeley.

There is another site in my constituency that has excellent digital infrastructure, and again, we need to make the most of it. It is the Cannock campus of the South Staffordshire College. It was very disappointing to hear recently that it is to shut owing to falling numbers, because it had received a multi-million pound investment a few years ago, part of which provided it with excellent digital infrastructure. We need to make the most of this site as we look at plans for its future. We need to tap into that digital infrastructure.

I am sure that many other Members want to speak in this important debate, but I want to come back to the Bill that we are discussing tonight. It is part of a wide range of reforms that the Government are undertaking to ensure that we have excellent digital infrastructure across our country. I welcome the Bill. I welcome the fact that it will enable my constituency and others to have faster, more reliable broadband and to enjoy all the benefits that the internet and emails offer us.

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[Wendy Morton]

I bow to the hon. Gentleman’s judgment on that one. Sadly, I did not have much chance to use the “brick”; I seem to my recall that my husband used it more than I did. However, I do have my own iPhone these days, so things have changed. Today, we can stream films into our homes and download music. I have something that I call the boogie box. I can have it in the kitchen or move it around the house, and it picks up the music from my iPhone. It is just amazing what we can do and how technology has changed our lives. It has also changed business and so many other things.

The Bill is relatively short, but it is very important. It gives effect to one of the commitments on digital communications that were made in last year’s autumn statement. It is also important because it aims to give targeted support to the roll-out of full-fibre broadband connections and 5G mobile communications. Often, when we talk about infrastructure in this place, we are talking about roads, railways or bridges. We are talking about very visible and tangible pieces of infrastructure. That infrastructure obviously matters to the local area, as well as regionally or nationally, but occasionally something that seems small can have a much more far-reaching impact.

This Bill is about a piece of infrastructure that is far less visible. We see the green broadband boxes as we drive round our constituencies, but we cannot see the full-fibre broadband. We will know it is there, however, because we will be able to access it. Although the technology is not visible, the Bill will enable full-fibre broadband to reach across England and Wales to the benefit of residents and businesses across the country and across my constituency.

Many hon. Members have given examples this evening of where broadband makes a difference in their constituencies—an individual household, a small retail business, a large manufacturer in a business park or someone working in the gig economy. Small and medium-sized businesses are the backbone of the local economy in my constituency. Whether in the shops of Aldridge village centre or in one of our many and varied business parks, businesses are creating jobs, driving the investment that is reducing unemployment, and developing skills for today and for the future. Such businesses may use the internet to sell their goods, to order components or materials, or to run their customer service. The internet is now an integral part of business.

[Amanda Milling]

Access to the internet is as important as electricity. If the lights go out and the power goes off, a manufacturing business will not be able to produce its goods. In the same way, if a business is reliant on the internet, it can grind to a halt without it.

[Wendy Morton]

My hon. Friend is absolutely right. Before entering this place, I worked in the optical industry, and our business relied on the internet day in, day out for processing orders and for sending stock back to Europe. The minute the internet went down we could do nothing at all, which shows how crucial connectivity is.

The Bill is vital, because under current broadband, superfast broadband and mobile coverage we still get some so-called notspots. We have rightly heard many contributions from hon. Members representing rural constituencies. My constituency does not fall into that category, but I agree with my hon. Friend the Member for Cannock Chase that rural constituencies are not the only ones that are affected. We have notspots in my constituency, and I even find that I have to move around in my own home from time to time to get a mobile connection. Were it not for the wi-fi connection, I would struggle on many a day. I hope that the days of having to lean out of the kitchen window or move to a certain spot in the living room to get some mobile signal will soon be a thing of the past.

We have heard a lot about businesses and individuals tonight, but this Bill is not just about them. I am thinking of my constituency’s many voluntary organisations and charities, many of which provide lifelines to local residents. They too rely on having a good internet connection. Through their webpages, they allow people to get information 24 hours a day. Through the internet, we are able to reach much further than we could in the past.

I want to follow up on something said by some other hon. Members about demographics and age. Access to the internet has the potential to cut across all parts of society. If an older person has good internet access, they can keep in touch with their family through Facebook or FaceTime—things that we did not have a few years ago. If someone has grandchildren living on the other side of the country, or even on the other side of town, and wants to connect with them on a more frequent basis much more cheaply than by using the telephone, that can be facilitated through a good internet connection.

When I go into a school, as all hon. Members do, and have a debate either with primary school children or, more often than not, older secondary school children, the very valid question, “What do the Government do for us as young people?” often comes up. Sitting here today has made me realise that this Bill is an example of something that the Government are doing that will help young people. The younger generation are probably more tech and phone-savvy than all of us here put together—I can certainly speak for myself on that.

Telecommunications Infrastructure (Relief from Non-Domestic Rates) Bill

Amanda Milling Excerpts

3rd reading: House of Commons & Committee: 1st sitting: House of Commons & Report stage: House of Commons
Tuesday 5th September 2017 Commons Chamber

[Mr Jones]

Even in developments of under 30, developers are required to provide a broadband connection for the people who are going to be occupying those properties. It is the developments of over 30 that require fibre broadband to be connected. While my hon. Friend does not seem happy with the premise on which that is based, the rationale behind it is based on the viability of new developments. Quite often, the smaller developments are more difficult for developers to find viable. Therefore, rather than prevent those developments from taking place by overburdening developers with regulations, a balance was struck.

[Amanda Milling (Cannock Chase) (Con)]

Since speaking on Second Reading about connectivity to new homes, another case arrived in my inbox last week. I cannot go through it in an intervention, but needless to say it involves BT Openreach and the developer, with lots of emails to and from the constituent. I am sure that I will be writing to my right hon. Friend the Minister for Digital about it over the next few weeks.

[Mr Jones]

I am sure that my right hon. Friend the Minister will be very happy to talk to my hon. Friend about this issue.

As I have said, through our work with the sector and the Valuation Office Agency, we believe that we have found a clear way to capture the concept of new fibre. We have set this out in our draft regulations and the consultation document that we published last week. However, this is a technical and fast-moving sector, so we will keep the operation of the relief under review to ensure that it is working as planned and that the regulations keep pace with the continuing technical advances and changes in the industry. Accordingly, it will remain important that we have the powers available to amend the operation of the relief scheme over time. The powers in the clauses will also allow the Secretary of State to determine the level of relief to be awarded. As I have said, the Government intend to allow telecoms operators 100% relief, but only for new fibre. That new fibre will of course form part of existing telecom networks with existing ratings assessments.

Through the operation of this scheme, we intend to ensure that the relief is awarded only in respect of new fibre and not existing fibre. To achieve this, the powers in the clauses will allow us to set, by a formula contained in regulations, the correct level of relief for each property, reflecting the amount of their network that qualifies for the relief. This will be based on a certificate of the amount of rateable value that it appears to the valuation officer is attributable to the new fibre. The consultation document we published last week explains how, when taken together, the formula in the Bill and the formula in the draft regulations will deliver the correct relief for a property.

As I have said, these provisions are mirrored in the first three clauses of the Bill. Sometimes the letters in the formula differ, but that is merely to conform to existing lettering in the sections into which the formula will be introduced. Hon. Members will have noticed that clause 1 includes a table referring to different subsections. In theory, there will be instances where a property could be eligible for the new fibre relief but also for another such as charitable relief, although we believe this to be extremely unlikely. However, for completeness, the table in clause 1 makes it clear which relief should apply. No such conflict can arise for unoccupied properties or properties on the central list, so the table appears only in clause 1. The rules we have adopted here are consistent with the existing hierarchy of reliefs in the business rates system. Charity relief will apply above all others, and then reliefs such as small business rate relief. The relief for new fibre will apply only where no other relief applies.

Clause 4 gives effect to the schedule to the Bill. As I have described, the Bill makes a number of amendments to different sections of the Local Government Finance Act 1988. Most of the amendments in the schedule are to that Act, and are necessary merely to ensure that those provisions continue to make sense and operate as intended. We are also in the schedule making consequential changes to the Business Rate Supplements Act 2009. Ratepayers entitled to mandatory reliefs in the main business rates system are also entitled to the same relief against the business rate supplement currently applied to larger properties in London. The Bill ensures that that continues to apply for the new fibre relief through these consequential amendments.

Clause 4 also includes the normal power to make regulations for other consequential provisions. We intend to use these powers to make consequential changes to the regulations that govern the transitional relief scheme. This will ensure that the relief is also available for those ratepayers who are either receiving transitional relief or whose reductions from the revaluation are being capped to fund the transitional relief.

Clause 5 provides the normal authority from Parliament that is necessary when making provisions that create a charge on public funds.

Clause 6 provides that the Bill applies to England and Wales. Business rates policy is devolved, so it will be for the Welsh Government to consider whether to introduce a similar relief. The Welsh Assembly Government have asked for the powers in this Bill to apply to Wales, although it will of course be a matter for Welsh Ministers to exercise those powers in relation to Wales. In Scotland and Northern Ireland, business rates legislation is made in their own Parliaments, so again it will be a matter for them whether to proceed with this measure. However, under the Barnett formula, Wales, Scotland and Northern Ireland will receive their share of the funding of the relief. As we have discussed, the relief for new fibre will apply from 1 April 2017, so clause 6 also provides that the amendments and powers in the Bill can take effect retrospectively for the financial year commencing 1 April 2017.