Press release

Business rates boost for broadband

Homes and businesses across England set to benefit from better broadband.

Network

Homes and businesses across England are set to benefit from better broadband thanks to new laws introduced by the government today (4 July 2017).

The Telecommunications Infrastructure Bill is paving the way for a gold standard of full-fibre broadband and future 5G communications. By enabling 100% business rates relief for operators who install new fibre on their networks, the Bill will incentivise operators to invest in the broadband network.

By seeking to improve the speed, service quality, security and reliability of broadband services, the Bill has the potential to transform the way in which modern businesses work together, reach their consumers and target their export markets.

The benefits of better broadband will be felt wider than businesses. It will also increase internet speeds for households and enable households with multiple devices and users to download and upload huge amounts of data. For example, simultaneously streaming high definition TV and films, playing online games, and working from home quicker and more reliably than ever before.

These measures will provide important support for a more productive economy and boost the prospects for economic growth.

Minister for Local Government Marcus Jones said:

Regardless of where you live or work, we want everyone to benefit from access to the fast, affordable and reliable broadband they need to thrive.

From making it easier to work from home to allowing digital businesses to flourish, our measures are creating the right conditions for more high-skilled, high-paid jobs of the future.

We’ve already committed £400 million for a new digital infrastructure fund and this government’s Digital Strategy is helping bring together business organisations, local authorities and communications providers.

Now the Telecommunications Infrastructure Bill is going one step further to kick start the installation of new fibre, paving the way for better connectivity across the country.

Minister of State for Digital, Matt Hancock said:

We want Britain to remain the digital world leader that it is, and that means having the right infrastructure in place that will allow us keep up with the rapid advances in technology now and in the future.

We want to see more commercial investment in the gold standard connectivity that full-fibre provides, and the 100% business rate relief and the Digital Infrastructure investment fund will provide a strong incentive for this.

Building on £400 million Digital Infrastructure Investment Fund

At the 2016 Autumn Statement, the government announced £1 billion of new funding to boost the UK’s digital infrastructure. This includes investment of £400 million in a new Digital Infrastructure Investment Fund to support emerging fibre broadband providers.

Today’s announcement builds on the recent, pioneering new Digital Strategy, which has skills, infrastructure and innovation at its heart to support Britain’s world-leading digital economy.

As we make the most of the opportunities presented by exiting the European Union, it will help to make the UK the best place to start and run a digital business – creating more of the high-skilled, high-paid jobs of the future.

This 100% rate relief for new full fibre infrastructure in England will apply for 5 years and be backdated to 1 April 2017. The relief will provide £60 million of It will support to telecom companies who invest in their fibre network by installing new fibre lines to support our digital infrastructure.

Read more information on the Bill.

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Published 4 July 2017