Philip Hammond will promise a massive upgrade of Britain’s digital infrastructure to prepare the economy for the competitive pressures it will face after Brexit.
The chancellor will tell the CBI’s annual dinner on Tuesday night that more widespread use of full-fibre networks will be vital if the UK is to stay in the vanguard of the technological revolution after it leaves the EU.
Unveiling plans aimed at ensuring Britain has the fastest broadband connections in the world, the chancellor will also tell members of the employers’ organisation that they need to do more to raise productivity by investing more and embracing innovation.
“In the 21st century, fibre networks will be the enabling infrastructure that drives economic growth,” Hammond will say.
“Full-fibre networks are faster, more reliable, and more affordable to operate than their copper predecessors. Over a million premises already have direct access to them – but if we are to achieve our ambition of a truly high-speed economy, and keep up with our competitors, then we need a step change in our approach.”
Hammond will set a target for the number of full-fibre connections to increase by two million a year for the next seven years, taking the total to 15m – the majority of homes and businesses – by 2025.
“We won’t do that by government diktat. We will do it by creating the conditions for the market to deliver,” the chancellor will say. The plan involves ensuring all parts of the country benefit from fibre technology and that a nationwide network of fibre is complete by 2033.
Hammond will launch a new probe into Britain’s poor productivity record, which will focus on why some businesses fail to keep up with leaders in their sectors.
“Government can’t solve our nation’s productivity challenge alone, because it is not only about infrastructure investment. It is also about management skills at the level of the firm. We need business leaders in this room and around the country to embrace innovation and technological change and to invest in driving productivity growth,” the chancellor will say.
