Telecommunications Infrastructure (Relief from Non-Domestic Rates) Bill

Marcus Jones Excerpts

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

[The Parliamentary Under-Secretary of State for Communities and Local Government (Mr Marcus Jones)]

We have had an interesting and, at times, wide-ranging debate on this important Bill. It is good to see such interest from Government Back Benchers, but it is slightly disappointing not to hear one speech from an Opposition Back Bencher on such a critical issue across the country.

The improvement of connectivity in the digital age helps individuals in their workplaces and homes, and can transform public services and the economy. Improved connectivity will bring significant economic rewards, with research suggesting that increased broadband speeds alone could add £17 billion to UK output by 2024, which has been recognised by all Members who have spoken today. I thank the many colleagues who made such passionate contributions today, which show that we all recognise the importance of investing in our telecommunications infrastructure.

The Bill will ensure that we help to close the digital divide and get higher quality, more reliable and resilient connectivity to more households and businesses. The Bill makes the technical changes needed to introduce 100% business rates relief for five years for newly installed fibre infrastructure. The importance we place on that relief is shown by how quickly we have introduced the Bill in the Session.

The Chancellor announced at autumn statement 2016 that we would provide relief on new fibre with effect from 1 April 2017. It is therefore vital that we move quickly to reassure the sector that the relief will follow. Investment decisions have been made on the back of the Chancellor’s commitment, and it is right that we proceed with the Bill to give us the powers to deliver the promised relief.

The Bill introduces support that forms part of a wider £1 billion package of measures that the Government are putting in place to support investment in digital infrastructure, and it forms an important part of the Government’s digital strategy. As such, the Bill will help to maintain the UK’s current high ranking as an internet e-commerce economy, as well as providing significant coverage of quick, reliable broadband connections to homes across the country.

I want to mention some of the contributions made in this debate, starting with that of the hon. Member for Denton and Reddish (Andrew Gwynne). He welcomed the Bill and also made the economic case for it. I felt he acknowledged that this Government are investing in the technology of the future. He intimated that the measures in the Bill will favour larger providers, but let me reassure him that, on the contrary, the Bill actually helps the smaller providers and opens up competition. It puts those smaller providers on a more level playing field, and that view was reiterated in several contributions.

The hon. Gentleman mentioned business rate retention, and we are absolutely clear that we want local government to keep more of the taxes that it raises locally. That commitment was in our manifesto and we are looking to follow through on it.

[Andrew Gwynne]

This is an important point, which I have raised in points of order and through other mechanisms in the past week or so. Will the Minister clarify that it is still the Government’s intention to proceed with the measures that were in the Local Government Finance Bill relating to the local retention of business rates, on the same timetable set out, with the changes to the revenue support grant?

[Mr Jones]

As I said to the hon. Gentleman in my response to his comments, this Government are absolutely committed to allowing local government to keep more of the taxes it raises locally. That was in our manifesto. He made a very important point, not just then, but during his contribution, about local government wanting certainty, but he was using a little faux rage, given that during the time his party was in government, local government had no more than one year of certainty on how it would be funded. Local government currently has a four-year settlement and therefore greater certainty. That said, we are well aware that in the last year of that settlement we need to provide certainty to local government, and it is our intention to do just that.

The hon. Gentleman also mentioned more regular revaluations. I can—

[Andrew Gwynne]

rose—

[Mr Jones]

I am not going to give way; I am going to make some progress. On regular revaluations, I just want to tell the hon. Gentleman that we are committed to the aim of delivering more frequent revaluations. The hon. Member for Makerfield (Yvonne Fovargue) also made the important point about the detail of the measures in the Bill. As she knows, this is a framework and we are going to introduce further regulations to implement the Bill. I can assure her that those regulations will be put forward before the Committee stage, so that hon. Members can scrutinise them during the passage of the Bill.

[Andrew Gwynne]

On a point of order, Mr Speaker. I have stood at this Dispatch Box on a number of occasions in the past week or so to discuss this important issue; I have asked you how we can get a statement from the Secretary of State or his Ministers. The last time, the Secretary of State did say that we could raise this in a debate. I have asked the question and we have still not got answers. How do we get that certainty for local government?

[Mr Speaker]

The answer to the hon. Gentleman’s question is that if he does not at first succeed, he must try, try again. I am sure that is something his mother taught him when he was at school—when he was a young boy growing up. What I would say to him is, “Persist. Go to the Table Office. Think of the opportunities for different types of questions and, as we approach the summer recess, the relative urgency or emergency of what he seeks.”

[Mr Jones]

Thank you, Mr Speaker.

Let me move on to contributions made by other right hon. and hon. Members. My right hon. Friend the Member for Wantage (Mr Vaizey) showed his significant knowledge in this area. He welcomed the Bill and, given that significant knowledge, it was good to see him confirm that he thought the Bill would help to incentivise the smaller providers and increase competition in the sector, a point reiterated by my hon. Friend the Member for North West Hampshire (Kit Malthouse).

My right hon. Friend the Member for Wantage also mentioned the impact the Bill would have on our mobile infrastructure and 5G, as well as the need to look at the planning system to ensure that we have the mobile infrastructure we need. I am sure he will be aware that provisions were introduced last November as part of the Digital Economy Act 2017 to speed up the planning process for telecom infrastructure.

The hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) welcomed the framework for England and Wales. As he acknowledged, the Bill’s framework will allow the devolved Government to take up—or not, as the case may be—the measures. He was right to point out that funding will be provided for Wales through Barnett consequentials.

My hon. Friend the Member for North Dorset (Simon Hoare) made an important point about the potential loss of income for local authorities during the Bill’s implementation. I can reassure him that if a network is on the local rating list, compensation for local government will be provided via a grant to cover the particular local authority’s share of the cost of providing the business rate relief.

My hon. Friend the Member for North West Hampshire welcomed the Bill, which I understand fulfils a wish he had during the passage of the 2017 Act. He seemed extremely pleased that the Government have taken up the suggestion to provide this business rate relief.

My hon. Friend the Member for Faversham and Mid Kent (Helen Whately) discussed the Bill’s importance in the context of social inclusion and the tackling of loneliness. She referred to rural small businesses that would benefit from the delivery of fibre broadband to their communities.

My hon. Friend the Member for Aldridge-Brownhills (Wendy Morton) recognised that the five-year rate relief period would provide a significant incentive to fibre broadband. Like my hon. Friend the Member for Bexhill and Battle (Huw Merriman), she made the perceptive comment that this type of fibre broadband is becoming as important a part of the nation’s infrastructure as our road and rail network.

My hon. Friend the Member for Boston and Skegness (Matt Warman) made an important contribution. He has campaigned tirelessly on this issue and talked about the benefit for the Government, with our investment being returned many times over because of the increased economic activity that will be created.

My hon. Friend the Member for Cannock Chase (Amanda Milling) talked about the importance of having fibre connectivity on new housing estates, citing Chasewater Grange. She also mentioned the opportunity that the fibre roll-out could provide to new industrial developments, and did not forgo the opportunity to mention the Rugeley B power station site, which is extremely important to her and her constituents.

My hon. Friend the Member for North East Hampshire welcomed the Bill and mentioned how, in rural areas such as his, its provisions could well assist with tech jobs that hitherto may not have been deliverable in rural areas.

[Ms Nusrat Ghani (Wealden) (Con)]

The Minister mentions rural areas; could he reference my constituency, Wealden? Broadband is imperative there, not only for the farmers who need to log their files and the teachers who need to do their Ofsted reports, but for the many business throughout the constituency’s three towns, Uckfield, Crowborough and Hailsham. We need connectivity in rural areas, and I hope the Minister can comment on that.

[Mr Marcus Jones]

I concur with my hon. Friend. My hon. Friend the Member for Sleaford and North Hykeham (Dr Johnson) made the same comments in regard to how these types of measures will help those in her constituency engaged in the agricultural industry and farming.

In conclusion, this Bill will help businesses and households with their broadband and support the economy. It is only one of several measures—[Interruption.]

[Mr Speaker]

Order. I am sure that the Minister is very flattered. The House cannot wait to hear more of the oratory.

[Mr Marcus Jones]

Thank you, Mr Speaker.

This is one of several measures that we are taking on both broadband and business rates and I commend it to the House.

Question put and agreed to.

Bill accordingly read a Second time.

Telecommunications Infrastructure (Relief from Non-domestic Rates) Bill (Programme)

Motion made, and Question put forthwith (Standing Order No. 83A(7)),

That the following provisions shall apply to the Telecommunications Infrastructure (Relief from Non-Domestic Rates) Bill:

Committal

(1) The Bill shall be committed to a Committee of the whole House.

(2) Proceedings in Committee of the whole House shall be taken in the following order: Clauses 1 to 4; the Schedule; Clauses 5 and 6; new Clauses; new Schedules; remaining proceedings on the Bill.

Proceedings in Committee of the whole House, on Consideration and up to and including Third Reading

(3) Proceedings in Committee of the whole House, any proceedings on Consideration and any proceedings in legislative grand committee shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which those proceedings are commenced.

(4) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.

(5) Standing Order No. 83B (Programming committees) shall not apply to proceedings in Committee of the whole House, to any proceedings on Consideration or to other proceedings up to and including Third Reading.

Other proceedings

(6) Any other proceedings on the Bill may be programmed.—(Rebecca Harris.)

Question agreed to.

Telecommunications Infrastructure (Relief from Non-domestic Rates) Bill (Money)

Queen’s recommendation signified.

Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),

That, for the purposes of any Act resulting from the Telecommunications Infrastructure (Relief from Non-Domestic Rates) Bill, it is expedient to authorise the payment out of money provided by Parliament of any increase attributable to the Act in the sums payable under any other Act out of money so provided.—(Rebecca Harris.)

Question agreed to.

[Mr Speaker]

Order. If, inexplicably, some Members do not wish to hear the debate on the future of the King George Hospital in Ilford, I hope that they will leave the Chamber quickly and quietly, so that we can hear the oration from the constituency Member of Parliament, and his neighbour, to whom the matter is of great importance.