Karen Bradley
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Fiona Bruce (Congleton) (Con)
I will first speak about the need for rural broadband, particularly of the superfast variety, in Cheshire East. I will then go on to describe the benefits it will provide for that area and the wider region, to talk about the gaps in coverage and funding, and to ask for reassurances and a response from the Minister.
Cheshire East council considers that investment in superfast broadband is the single greatest action that can be taken to drive economic growth and improve the quality of life of residents. The area served by the council includes my constituency of Congleton and those of Macclesfield and of Crewe and Nantwich, and I am grateful to the Members who represent those constituencies for being here today, and also to my hon. Friend the Member for Warrington South (David Mowat), to whom I will refer later.
The local enterprise partnership has designated the roll-out of superfast broadband across the area, and across the wider area of Cheshire West and Warrington, as its top priority. The Cheshire and Warrington superfast broadband partnership has been established by three local authorities—Cheshire East, Cheshire West and Chester, and Warrington—which, working together, aim to achieve 100% superfast broadband coverage by 2015. To maximise the economic, social and environmental benefits for businesses and residents right across the region, that aspiration exceeds Broadband Delivery UK’s 90% target. Much of what I say today will be in support of the work of that partnership, and I shall highlight the needs of constituents in Cheshire East.
The economic growth that the area needs, particularly to provide jobs for the next generation, will largely be driven by small businesses, and in my constituency it will be almost entirely so, because almost all its 4,000 or so businesses are small. They need the high speeds that superfast broadband provides to be able to compete nationally and globally with their more urban competitors that already have the service. Superfast broadband will enable them to offer existing services at lower costs, expand their market reach, increase productivity, develop new products and provide new services. The area needs high-speed broadband not only to ensure that existing businesses develop but also to attract new ones, but the benefits would not be for just businesses. I heard recently of a business man who was considering relocating to the area but was deterred by his school-student son, who said that he did not want to move because of the poor broadband connections.
It is not just the young who want high broadband speeds; the elderly, and the public and voluntary sectors that serve them, recognise the transformational social impact that comprehensive superfast broadband can bring, through technology that supports health care delivery. This includes telehealth, which is the remote capture of information for clinical review, telecare, which is a range of alarms and sensors in the home to enable independent living, and medical consultations through video teleconsultation. In the Cheshire East area, with its considerably higher than average ageing population, the benefits would be substantial. An excellent example, which demonstrates how the council is keen to capitalise on the use of technology to benefit older people, is the recently developed DemenShare scheme. This is a web-based scheme through which dementia sufferers and their carers can access and share support and know-how.
The need for superfast broadband in rural areas is well documented, and Cheshire East has a higher level of rurality than one might realise.
Karen Bradley (Staffordshire Moorlands) (Con)
I am pleased that my hon. Friend has secured this important debate, and I welcome much of what I have heard about the introduction of high-speed broadband in Cheshire East. However, the benefit will be spread much wider than the residents of Cheshire because many of my constituents receive their broadband and their telephone line through the Congleton exchange.
Fiona Bruce
That is a point well made. Staffordshire Moorlands is a highly rural area, and it will benefit exponentially from the support.
Cheshire East is 64.4% rural. Rural areas can benefit disproportionately from investment in superfast broadband, and they are there to be benefited. The growth rate in VAT-registered businesses in rural areas is 2.7%, compared with a decline of 0.3% in England and Wales as a whole. Home-based businesses are becoming increasingly important in rural economies. An academic study by Mason and others reported that 50% of businesses in rural areas are home based, compared with 26% in urban areas. In a more local study—of Alsager, in my constituency—of which I was advised by the Alsager partnership, it was calculated that approximately one in 10 homes hosts some form of home-business working.
Bearing in mind the historically low levels of state-funded investment in recent years in many rural areas—including in my constituency and in Cheshire East as a whole—compared with their urban counterparts, there is significant potential to add economic value through superfast broadband investment. England’s rural areas host at least 27% of the country’s enterprises but only 9% of its business revenue. There is genuine potential, and superfast broadband is the platform for unleashing it in Cheshire East.
Turning to the benefits that superfast broadband coverage will provide, I have already touched upon those for the rural economy and for older people. In addition, exponential benefits can be gained in this region as a result of the already-skilled entrepreneurial population. The area is home to a high proportion of knowledge-based industries. In my constituency, there is already a significant presence of digital and creative industries, with a potential for great growth that could be magnified by the benefits of comprehensive superfast broadband coverage. Lying as it does just beyond the main commuter belts of Manchester and Liverpool, the high-level digital connectivity to new business provided from MediaCityUK in Salford has a particular potential to provide transformational impact, both in strengthening existing businesses and in promoting the area as a business location of regional significance. For example, a graphic designer who is able to download large files quickly could work efficiently mainly from home in Cheshire East, with occasional face-to-face meetings in MediaCityUK.
Turning to the educational benefits for our young people, educational attainment is higher than average in Cheshire East, and that is important because young people are likely to adopt superfast broadband and play an important role in using it to create and distribute content. In a constituency from which a disproportionate number of young people have migrated in recent decades to find work, it is particularly important for the intergenerational balance of our communities that we provide work for, and retain, young people within the area, and superfast broadband will be a key factor in ensuring that. In other words, the social and economic returns to the region—and, in turn, the support for the national economy—from investment in superfast broadband through a combination of private and Government funding will, I am assured, be disproportionately greater in the Cheshire and Warrington area than in many other regions.