Budget Resolutions and Economic Situation

Ian Liddell-Grainger Excerpts

Monday 8th March 2021 Commons Chamber

[Mr Ian Liddell-Grainger (Bridgwater and West Somerset) (Con) [V]]

I have given the Chancellor an enormous amount of praise during this crisis and for this Budget, but I offer him a few words of caution. He and I have crossed swords only once, and that was three years ago, when he was the Under-Secretary of State for Housing, Communities and Local Government with the task of forcing through a law to abolish my local council in West Somerset and create a new, bigger council with Taunton, which was a financial disaster. The idea was conceived by local Conservatives and sold to the Government even though it was widely unpopular. The public never got a proper say or a referendum.

I warned my right hon. Friend that the issue would rebound, and it jolly well did. As soon as the ballot boxes came out, people picked the Liberal Democrats, and the Conservatives were punished. I warn him that this could happen again, with a huge financial cost throughout Somerset. He must remember the summer of 2018, when the leader of the county council came to London with a pet plan to form a local government. He did not bother to consult party colleagues in Somerset first. I warned my right hon. Friend then to tread very carefully, because he had seen it once already. I think he listened, but the leader of the county council returned and attempted to talk to his counterparts. The district council was invited to look at all the options and produce a report, but when it reached no definite conclusion the leader of Somerset County Council branched out on his own again and, again, we had a financial mess.

That brings us to 2020 and the start of this frightful pandemic, when every single council faced a huge crisis, and not just financially. Surely it is a lousy time to chase dreams when you are meant to be looking after people, but our county council insisted, and here we are. The Chancellor’s old Department is behaving in the same way—the people’s voice is not being heard. Instead of another tacky online questionnaire that can be tweaked, leaked and interfered with by anybody anywhere in the world, let us have proper consultation.

The Chancellor has been extraordinarily generous to Somerset County Council, providing it with £80 million. The emergency funding runs into many millions. My right hon. Friend may be shocked to learn that, believe it or not, £13,550 has been squandered on a local TV love-in and regional treasure, with a glowing video to promote the council leader using covid money. That is the monthly equivalent of a Cabinet Minister’s salary for a couple of days’ work. It is a tacky saga that could all end in tears for our party.

I warn the Chancellor that this will be a financial disaster. The council has used the money that was meant for covid in the Budget to balance its books and put money into roads and car parks, and unfortunately, that continues. I hope that the Chancellor is listening before we have another problem on our hands.

Shared Rural Network

Ian Liddell-Grainger Excerpts

Monday 28th October 2019 Commons Chamber

[Nicky Morgan]

I would ask the hon. Lady also to raise that question with the Scottish Government. She is right to say that we want to get on with this and that matters of critical importance—even life and death—can rely on having a mobile phone signal, but we need to do this in the right way so that it actually works and provides reliable coverage. As I said in my statement, although 2025 is the target date, there are many areas where shared 4G coverage will be in place much sooner. There are difficulties in the more rural areas, which is why this is going to take slightly longer to roll out in some parts of the UK. I hope that we will have more details in time so that constituents can see where that coverage is going to be achieved in their area.

[Mr Ian Liddell-Grainger (Bridgwater and West Somerset) (Con)]

First, until we change the rules in national parks, we are not going to achieve universal coverage. Secondly, Connecting Devon and Somerset has been a disaster. Will the Secretary of State please change what that project is doing? Until we do, the good burghers of Somerset and Devon are not going to get universal coverage.

[Nicky Morgan]

I will certainly look into the issue that my hon. Friend has raised in relation to the national parks, but of course there are always going to be challenges. It is not just about throwing money at the problem. It is also often about ensuring that the physical infrastructure is allowed to be erected.

With regard to Connecting Devon and Somerset, the digital and broadband Minister, my hon. Friend the Member for Boston and Skegness (Matt Warman), had a meeting with Members from the area. We know that there have been issues, and obviously the organisation is looking for alternative providers. My hon. Friend is talking about broadband connectivity, which is a slightly separate issue, but he is right because at the end of the day, constituents do not distinguish; they just want better connectivity all round.

Superfast Broadband Delivery: Somerset

Ian Liddell-Grainger Excerpts

Tuesday 13th November 2018 Westminster Hall

[James Heappey]

My hon. Friend is ensuring that the Minister gets the message loud and clear, because that is one of the key questions for today’s debate. The remedial plan presented by Gigaclear already runs beyond the date that the Government have said that all available money for the delivery of phase 2 will be spent. Clearly, if Gigaclear’s remedial plan is accepted, the Government will need to be willing to extend the period over which the money is spent from 2020 to 2022. I hope that the Minister will be able to give us some good news on that.

Given that only 40% to 60% of properties that were due to be connected by 2020 will now be connected by that time, we might also look at whether we should offer a voucher scheme to people who now find themselves in the 50% to 60% that will not be connected, so that they can take some sort of interim measure themselves. We did exactly that for those who were going to be in phase 2 or in the final 5% when the phase 1 delivery programme was rolled out; we offered voucher schemes of £500, so that people could take interim measures within their homes.

The second issue is the ongoing case for state aid, which we have spoken about a number of times. When the delay in the Gigaclear delivery was first announced, I was straight on local TV and radio, and speaking to my local newspapers, because I was very, very cross. My expectation was that my mailbag was about to explode and that I was going to be contacted by hundreds, if not thousands, of very angry people who were concerned that the broadband they had been waiting for for years and they thought was just weeks away was actually going to be years away again.

The reality is that I have had hardly anything, and that makes me wonder why. If I go back to my former employment, there is a very important part of the military planning process. When assessing the orders to be given in order to achieve a mission, we keep asking ourselves whether the situation has changed, in order to make sure that we are not problem-solving against a situation that no longer exists. I have come to realise in the last few weeks that the reason why so many of my constituents have not been in touch with me about the Gigaclear delay is that they have sorted themselves out.

They have gone to Openreach and put in place a community fibre partnership, or they have gone to companies such as TrueSpeed or Voneus that have cell-to-build business models. Those companies go out into communities and engage, they get 30% sign-up and then draw down the money from Aviva, which underwrites the delivery of the infrastructure, and they build the fibre into those communities. When the Gigaclear contract was delayed, there was complete silence from all those communities that were flashing red on the whiteboard in my office as those which most urgently needed broadband. The reason is that the market is already providing, and has already provided, for a number of them.

[Mr Ian Liddell-Grainger (Bridgwater and West Somerset) (Con)]

My hon. Friend is making a strong point and is representing his constituents extremely well. I am old enough to remember, because I was here before this started with CDS, that we were originally promised a level, as he quite rightly said, and it has not appeared. BT, slightly duplicitously, is getting in behind and setting up in villages that we were not expecting to come on. They were going to come on with Airband or Gigaclear, which is the point that my hon. Friend has made, and have actually come on behind. We should celebrate the fact that BT is still opening up in some areas—I hope the Minister takes that point—as it is a good fibre system. I accept that Gigaclear has problems and I understand that, but we must not just put BT to one side, because its infrastructure is what they all use.

[James Heappey]

My hon. Friend and neighbour is absolutely right: the market is delivering. Whatever the business model, and whether that is cell first and build second, I now have hundreds, perhaps even thousands, of TrueSpeed, Voneus and Openreach fibre-to-the-premise customers in my constituency—a situation that has been delivered through an open-market solution, within the area that the open market review had identified as requiring state aid.

A key question for the Government today is whether state aid is even legal in areas where the market has already provided. I am not sure that we should be using taxpayers’ money to subsidise the delivery of a competitor into an area where a commercial company has already set up. TrueSpeed is underwritten by Prudential. How absurd that we would be spending taxpayers’ money to subsidise the delivery of an infrastructure underwritten by one pension scheme while another, Aviva, has underwritten the money on a commercial basis without the need for taxpayers’ intervention. As the market has changed, we need to be very clear about whether we need to go back and look at the open market review again to understand where the market is now providing.

It is certainly the case that my constituency and those of my hon. Friends the Member for Weston-super-Mare (John Penrose) and for North East Somerset (Mr Rees-Mogg), of my right hon. Friend the Member for North Somerset (Dr Fox) and my hon. Friends the Members for Somerton and Frome (David Warburton) and for Bridgwater and West Somerset (Mr Liddell-Grainger) will benefit more quickly because TrueSpeed is working away from the transatlantic fibre link that lands at Weston-super-Mare. TrueSpeed has accessed that link to fibre and is fanning out from there. The delay in the Gigaclear contract is an opportunity for us to look again at whether the market has changed, and whether Gigaclear’s priorities need to be tweaked.

[James Heappey]

My hon. Friend is an excellent pacemaker—she runs slightly in front of me. I am coming to that point, but it is very helpful for the Minister to hear such things twice.

There is another part to the point about the change in the market and whether state aid is relevant. There is also the frustration that communities feel when they have got themselves motivated to bring in an alternative provider, such as TrueSpeed, Voneus or Openreach, and when they have fibre to the premise already, and yet their roads are now being closed and dug up with their tax money to deliver something that causes huge inconvenience to them while it is being put in, and which they have already got. A number of communities have written to me not to criticise the delay in the Gigaclear programme but to ask, “Why on earth are you still digging up our roads and blocking off our village when we have already got ourselves sorted and we have got it? Can we not have our tax money spent on improvements to our junction or a new road or something else?”

I know that is not how it works, but it certainly underlines the case for reassessing the priorities that Gigaclear has been set by Connecting Devon and Somerset, so that Gigaclear focuses on areas where we know the market will not be able to provide over the next 24 months, rather than focusing on areas, as is the case at the moment with its early areas, that are in direct competition, particularly with TrueSpeed. I am not sure that that is the most effective spending of Government money.

As my hon. Friend the Member for Taunton Deane (Rebecca Pow) pointed out, we have been given extra money by the Government to look at further broadband improvement in rural areas. There is a real opportunity to take the money that the Government have announced—I know that the Minister will be enthusiastic to remind us of the vast sums of money that the Government have made available to Devon and Somerset—and to add it to the £5 million-plus already available in gainshare from Openreach from phase 1 of the CDS roll-out, and the substantial additional money that is still to come as part of that gainshare, and look at where that combination of funds could be used as an intervention to deliver the final 5%.

We know now, by definition, what the final 5% is, because phase 2 delivers everything but the final 5%, so surely we can deliver that final 5% concurrently rather than waiting until we have connected the 95th percentile to get on with connecting the 96th through 100th percentiles. It seems to me that the money is already available. The gainshare is coming onstream very quickly. We have a real opportunity to get the whole thing cracked in a few years by taking advantage of what the market is now providing.

In some ways, we have an embarrassment of riches, because in some parts of Somerset we now have two entirely independent fibre-to-the-premise networks being dug in on very remote rural lanes, which is a slightly absurd situation. In small communities such as Badgworth, Biddisham and Lympsham, people will soon end up being able to choose which fibre-to-the-premise provider they want to use—not the internet service provider, but actually who is going to put the fibre to their front door. I am not sure that that is actually what taxpayers’ money should be being used for.

[Mr Liddell-Grainger]

I remind my hon. Friend that places such as Exmoor and the more remote parts of Somerset do not have that choice. Gigaclear’s cheapest package, for instance, is £35, with an activation fee of £120. Sometimes we have no choice. I know my hon. Friend is fully aware of that, because he covers the Mendips, but it is worth reiterating to the Minister that there is a cost differential here that people have to pay.