Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Labour pledges free broadband for all

Labour pledges free broadband for all

Labour has promised to give every home and business in the UK free full-fibre broadband by 2030, if it wins the general election.

The party would nationalise part of BT to deliver the policy and introduce a tax on tech giants to help pay for it.

Shadow chancellor John McDonnell told the BBC the "visionary" £20bn plan would "ensure that broadband reaches the whole of the country".

The Tories said it was "fantasy plan" that would cost taxpayers billions.

BT chief executive Philip Jansen told BBC News he was happy to work with whoever wins the election to help build a digital Britain.

But, he added, the impact of any changes on BT pensioners, employees, shareholders - and the millions of investors via pension schemes - needed to be carefully thought through.

According to a report from regulator Ofcom earlier this year, only 7% of the UK has access to full-fibre broadband.

The government hit its target to bring superfast broadband to 95% of homes by December 2017 - at a cost of £1.7bn - but the internet speeds are significantly lower than those of full-fibre.

Mr McDonnell told the BBC's Laura Kuenssberg Labour would add an extra £15bn to the government's existing £5bn broadband strategy, with the money to come from the party's proposed Green Transformation Fund.


'British Broadband'

The plan includes nationalising parts of BT - namely its digital network arm Openreach - to create a UK-wide network owned by the government.

"We're putting the money in and therefore we should own the benefit as well," said the shadow chancellor.

He said the roll-out would begin with communities that have the worst broadband access, followed by towns and smaller centres, and then by areas that are currently well-served.

A Labour government would compensate shareholders by issuing government bonds. He said Labour had taken legal advice, including ensuring pension funds with investments in BT are not left out of pocket.

As with other planned Labour nationalisations, he said MPs would set the value of the company at the time of it being taken into public ownership.

Having already announced plans to nationalise water, rail and now broadband, Mr McDonnell said this latest plan was "the limit of our ambitions".

A new entity British Broadband would run the network, with maintenance - estimated to cost £230m a year - to be covered by the new tax on companies such as Apple and Google.

"We think they should pay their way and other countries are following suit," said Mr McDonnell.

Labour has not yet completed the final details of how the internet giant tax would work saying it would be based 'percentage wise'' on global profits and UK sales, raising potentially as much as £6bn.

Mr McDonnell said that if other broadband providers did not want to give access to British Broadband, then they would also be taken into public ownership.

Broadband is now a major political issue, but on one thing all sides are agreed: the UK has fallen behind competitors in rolling out a fibre network - the gold standard where a fibre optic cable arrives directly into your home - and way behind countries such as Spain, Portugal and Norway.

When he was running for the Tory leadership Boris Johnson described the broadband strategy of Theresa May's government as "laughably unambitious", and promised £5bn to hit what the broadband industry thinks is an extremely ambitious target.

Now, Labour has come back with a plan that may be more realistic in time scale but is far more expensive in terms of state spending.

What is not clear is what happens to the wider broadband market - from Virgin Media and Sky to the raft of fibre broadband firms that have sprung up in recent years.

Labour is indicating that the companies "may want to come on board" with its scheme - but it is hard to believe that after years of complaining about BT stifling competition, they will be enthusiastic about competing with a state-owned monopoly.

The question for consumers may be who they should trust - broadband suppliers with patchy records on customer service or the state.

The shadow chancellor claimed such a scheme would also have positive effects on the environment, due to a reduction in commuting and enabling people to move out of cities to rural areas - and bring economic and social benefits.

But Conservative Culture Secretary Nicky Morgan said: "Jeremy Corbyn's fantasy plan to effectively nationalise broadband would cost hardworking taxpayers tens of billions.

"Corbyn is clearly so desperate to distract from his party's divisions on Brexit and immigration that he will promise anything, regardless of the cost to taxpayers and whether it can actually be delivered. What reckless idea will be next?"

The Tories say the full cost of Labour's plan would be £83bn over 10 years, rather than the £20bn claimed by Labour, as they had greatly underestimated the cost of re-nationalising parts of BT, broadband roll-out and salary costs.

Julian David, chief executive of TechUK, which represents many UK tech firms, said: "These proposals would be a disaster for the telecoms sector and the customers that it serves.

"Renationalisation would immediately halt the investment being driven not just by BT but the growing number of new and innovative companies that compete with BT."

Labour has costed its policy from a report produced by Frontier Economics in 2018, which was originally produced for the Department of Digital, Culture Media and Sport.

The report says that when Australia embarked on a similar scheme there was a lot of initial delay over contracts, lasting several years, before any rollout began.

However, once a rollout starts, Frontier says a nationalised programme can deliver relatively quickly.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
U.S. and Hungarian Officials Talk About Economic Collaboration and Sanctions Strategy
Technology Giants Activate Lobbying Campaigns Against Strict EU Regulations
Pope Francis Admitted to Hospital in Rome Amid Increasing Speculation on Succession
Zelensky Calls on World Leaders to Back Peace as Tensions Rise with Trump
UK Leader Keir Starmer Calls for US Security Guarantee in Ukraine Peace Deal
NATO Chief Urges Higher Defense Expenditure in Europe
The negotiation teams of Trump and Putin meet directly, establishing the groundwork for a significant advancement.
Rubio Touches Down in Riyadh Before Key U.S.-Russia Discussions
Students in Serbian universities Unite to Hold Coordinated Protests for Accountability.
US State Department Removes Taiwan Independence Statement from Website
Abolishing opposition won't protect Germany from Nazism—this is precisely what led Germany to become Nazi!
Transatlantic Gold Rush: Traders Shift Bullion in Response to Tariff Anxieties and Market Instability
Bill Ackman Backs Uber as the Company Shifts Towards Profitability
AI Titans Challenge Nvidia's Supremacy in Light of New Chip Innovations
US and Russian Officials to Meet in Saudi Arabia Over Ending Ukraine Conflict. Ukraine and European leaders – who profit from this war – excluded from the negotiations.
Macron Calls for Urgent Summit as Ukraine Conflict Business Model is Threatened
Trump’s Defense Secretary: Ukraine Won’t Join NATO or Regain Lost Territories
Zelensky Urges Europe to Bolster Its Military in Light of Uncertain US Backing
Chinese Zoo Confesses to Dyeing Donkeys to Look Like Zebras
Elon Musk is Sherlock Holmes - Movie Trailer Parody featuring Donald Trump's Detective
Trump's Greenland Suggestion Sparks Sovereignty Discussions Amid Historical Grievances
OpenAI Board Dismisses Elon Musk's Offer to Acquire the Company.
USAID Uncovered: American Taxpayer Funds Leveraged to Erode Democracy in Europe Until Trump Put a Stop to It.
JD Vance and Scholz Did Not Come Together at the Munich Security Conference.
EU Official Participates in Discussions in Washington Amid Trade Strains
Qatar Contemplates Reducing French Investments Due to PSG Chief Investigation
Germany's Green Agenda Encounters Ambiguity Before Elections
Trump Did Not Notify Germany's Scholz About His Ukraine Peace Proposal.
Munich Car Attack Escalates Migration Discourse Before German Elections
NATO Allies Split on Trump's Proposal for 5% Defense Spending Increase
European Parliament Advocates for Encrypted Messaging to Ensure Secure Communications
Trump's Defense Spending Goal Creates Division Among NATO Partners
French Prime Minister Bayrou Navigates a Challenging Path Amid Budget Preservation and Immigration Discourse
Steering Through the Updated Hierarchy at the European Commission
Parliamentarian Calls for Preservation of AI Liability Directive
Mark Rutte Calls on NATO Allies to Increase Defence Expenditures
Dresden Marks the 80th Anniversary of the World War II Bombing.
Global Community Pledges to Aid Syria's Political Transition
EU Allocates €200 Billion for AI Investments, Introduces €20 Billion Fund for Gigafactories
EU Recognizes Its Inability to Close the USAID Funding Shortfall Due to Stalled US Aid
Commission President von der Leyen Missing from Notre Dame Reopening Due to Last-Minute Cancellation
EU Officializes Disinformation Code for Online Platforms, Omitting X
EU Fails to Fully Implement Key Cybersecurity Directives
EU Under Fire for Simplification Discussions Regarding Corporate Sustainability Reporting
Shein Encountering Further Information Request from the EU During Ongoing Investigation
European Commission Initiates Investigation into Shein as It Aims at Chinese E-Commerce Regulations
German Officials Respond to U.S. Proposal for Peace Talks with Russia
Senate Approves Robert F. Kennedy Jr. as Secretary of Health and Human Services.
Trump and Putin Engage in Discussions on Ukraine Peace Negotiations Amid Worldwide Responses
Honda and Nissan End Merger Talks
×