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 a "fantasy plan" that would cost taxpayers billions. And the Lib Dems called it "another unaffordable item on the wish list".
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 said the process for implementing Labour's plan would not be "straightforward".
He added that the impact of any changes on BT pensioners, employees, shareholders - and the millions of investors via pension schemes - needed to be carefully thought through. However, TechUK, which represents many UK tech firms, said the proposals would be a "disaster" for the telecoms sector and customers.
But Mr McDonnell said the Conservatives' funding plan for improving broadband was "nowhere near enough" and would leave the UK falling further behind other countries who already have fibre more widely available.
Broadband packages in the UK cost households an average of around £30 a month, according to comparison site Cable - which people would no longer have to pay under Labour's scheme.
The party claims it would "literally eliminate bills for millions of people across the UK". The BBC's business editor, Simon Jack, said Labour's proposal had caught BT "off guard", as Mr McDonnell had said in July that he had no plans to nationalise the telecoms giant.
The company has disputed the cost of rolling out fibre broadband to every home and business, saying it would cost closer to £40bn than £20bn. 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 that 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.
Labour has also announced plans to install solar power hubs in 2,000 public spaces including libraries and community centres. The party says the programme would cost £57.3m - but that after 15 years public facilities would save £90m on their energy bills.
Comments
Post a Comment