CBI: Digital economy needs joined-up regulations and gigabit broadband

Networking the UK

The government has set out a 2025 vision for the rollout of gigabit connectivity in the UK. However, the CBI warned that there are a number of blockers to this policy, including access to properties, business rates, and ensuring regulatory reform incentivises investment.

It urged the government and Ofcom to address these to help businesses to invest more, upgrade networks more quickly, support the business case in potentially competitive areas like business parks and small market towns, and stimulate uptake. The CBI estimated that nationwide full fibre could boost productivity by £59bn and create 1.2 million extra jobs by 2025.

The report suggested that gigabit-capable networks could also help address wider societal issues such as cutting carbon emissions by reducing the need to commute, vital for a green economic recovery.

However, these benefits could be impacted unless the policy blockers are addressed concurrently. The CBI recommended that the government form a task force comprising business energy and industrial strategy (BEIS), digital, culture, media and sport (DCMS) and HM Treasury (HMT) departments, which should embark on coordinated demand stimulation, building on the shift to home working during the pandemic.

This task force should advise on a strategic and evidence based approach to stimulate business and consumer demand for gigabit capable broadband connections and 5G. The CBI recommended that the government prioritise the amalgamation of gigabit-capable connectivity adoption with wider work on business and public sector technology adoption, such as the BEIS Business Basics initiative, as well as lessons learned on technology adoption during the pandemic.

From a regulatory compliance perspective, the CBI urged the DCMS and HMT to develop a concise, cross-government strategy by mid-2021 to coordinate digital regulation, competition measures and review regulatory remits. It said that businesses are keen to provide insight to help the government map digital regulations, identify overlap and pinch points, and find opportunities to limit the regulatory burden on new challengers and scale-ups.

The CBI also recommended that the government use the National Data Strategy to articulate an ambitious and coordinated vision that stimulates innovation, delivers public value and upholds trust. It said that there is an opportunity to capitalise on lessons learned from data sharing during the pandemic to support companies’ own open data initiatives.

The report recognises the UK as a global leader in artificial intelligence. To sustain this leader position. The CBI said the UK needs to develop a regulatory and support ecosystem that promotes adoption, innovation and ethical development of the technology. “Government should continue to support the work of the Centre for Data Ethics and engage closely with industry and civil society in the development of a regulatory approach that promotes innovation and builds trust in the technology,” the CBI said.