Government set to plough more cash into broadband

 

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By Stewart Mitchell

Posted on 28 Nov 2011 at 08:37

Britain's broadband network is expected to receive a shot in the arm when Chancellor George Osborne announces a £30bn infrastructure building programme.

Osborne is expected to reveal an initial £5bn in additional infrastructure funding in tomorrow's Autumn Statement, where he will detail a package aimed at boosting the stalling economy.

According to widespread reports, the spending is expected to go into schools, and major infrastructure investments in road and rail networks and high-speed broadband.

Osborne said the funding would be made up from pension fund investment and from savings made in current spending cuts.

"British pension funds have not been investing the savings of British people in British infrastructure. Now we are hopefully going to change that,” Ocborne told the BBC's Andrew Marr Show.

“We have signed an agreement with the big pension funds that will see them investing British savings in British infrastructure, building an economy based now on savings and investment rather than on debt."

Politicians have already committed £530m in funding to help bring next-broadband to areas likely to be left out by market forces, but it is as yet unclear how much additional cash will be made available for fibre and other next-generation broadband projects.

According to The Guardian, Government sources told it ministers wanted to focus the resources on "job-creating capital investment in schools, roads, railways, high-speed broadband and energy projects".