We have just had a run-through of what the Bill contains, and by and large we welcome it. It is one of the remnants of the Local Government Finance Bill, which fell when the general election was called, and which contained things that industry and local government leaders wanted to see introduced. This could well be the first of several proposals, and I would welcome a conversation about that.
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If our country is to have the type of economy that we want, a concerted effort must be made to deliver high-speed broadband to each and every community. The Bill represents an important step towards securing better connectivity and access to high-speed broadband across the country. If we fail to install the infrastructure our country needs, we will fail to realise our full potential, and communities who already feel geographically isolated will feel digitally isolated as well.
Big data providers such as BT and Virgin will be the initial beneficiaries of the relief—through big programmes such as Virgin Media’s Project Lightning and BT’s Openreach subsidiary—but, in the longer term, it is expected and hoped that small providers will also benefit when they lay new fibre in the ground. We need more detail about how the scheme will go beyond the big players and get down to smaller providers, particularly those that are really making an effort to reach out in rural areas to get to places that are at a significant disadvantage when it comes to broadband connectivity. There is no detail on that, and it would be good to see some.
The ill-fated Local Government Finance Bill would have introduced a number of changes. Some of them caused concern; we were concerned about how the full retention of business rates would eventually be financed, and about how the loss of certain grant funding—the public health grant and the early intervention grant—would eventually settle when a scheme had to be developed for the whole country. But, equally, local government and industry have called for the Government to make sure that the legislation and the funding of public services catch up with changing demand and the changing way in which public services are delivered. We are keen to
see more detail, and perhaps even a schedule of legislation to implement measures contained in the Local Government Finance Bill that might still have a chance of being introduced.
We broadly welcome the Bill, and we sincerely hope that it will lead to a material change in the pace and the coverage of high-speed broadband. The Opposition have tabled a new clause, which is designed to be positive. It is about contributing to the debate and looking to see where we can improve the legislation. It is not intended to frustrate or delay the Bill, or to take away anything from its spirit; the new clause is intended to add to that, and I hope that the Government will see the benefit of it.
We have heard today a concern about how the big players might seek to manipulate the rules by, for example, turning from one type of cable to another. We have heard concerns about how some new housing developments might not see the full benefit. Under the current rules, in a new development of 29 properties it will not be mandatory to provide this cabling, but in a new development of 30 or 31 properties it will be. My question is: would it have been more appropriate to make the £60 million available to smaller developers to fund the connection at that end, rather than using it to provide a business rate discount at the other end?
The new clause is needed because it would allow the Government to assess, within a 12-month period, whether the £60 million is delivering the type of roll-out and coverage that they intended. If it is not, the 12-month review would allow those changes to be made, based on the information gathered over that period. I believe that a good Government should do that as a matter of course, and I am sure that the Government will say that that is exactly what they intend to do. If that is the case, why not receive our new clause in that spirit and incorporate it in the Bill?
It is important that the big players—Virgin Media and BT Openreach—understand that the Government have not just written a cheque for £60 million, which they are happy to write off if the scheme does not work. It is a deal, and the money is being made available because the Government are determined to see broadband rolled out. There is an expectation that it will be rolled out, and if it is not, the Government should have the facility—the mechanism—to change the scheme if it is being abused. By adopting this new clause the Government would send a message to the big providers that Government are watching to make sure that they deliver what is required, and that there will be a review in 12 months so that if the relief is not working the Government can change the legislation. I would welcome the Minister’s views on our new clause.