Source · Select Committees · Public Accounts Committee
Recommendation 4
4
he Department has been unable to show how it has learnt lessons from the superfast...
Recommendation
he Department has been unable to show how it has learnt lessons from the superfast programme into the detailed design of the gigabit programme. The Department’s objectives for its superfast programme were unspecific and delivery of the 95% broadband coverage target by 2017 sat largely with suppliers rather than being within the Department’s control. With full-fibre and gigabit coverage at 14%and 27% respectively on publication of the NAO’s report, which is behind other European countries, the Department is some way off its superfast programme objective to be “the best in Europe”. While the Department agrees that it needs to have clear objectives in place at the time of launching the subsidised element of its gigabit programme, we are not reassured that its new programme objectives will be any better. It is unacceptable that, once again, the Department has set a nationwide target for coverage (now revised from 100% to 85% by 2025), yet it has not published a realistic strategy for rolling it out, and has limited control over the levers necessary to achieve it. Indeed, the Department is relying on suppliers to deliver to 80% of UK premises without government subsidy. We are also concerned that the Department has not learned lessons about where to target areas for subsidy. The Department estimates that of the £1.9 billion public funding for the Superfast Programme, £0.9 billion is due to be repaid, which suggests that the subsidy was often not targeted at the areas in greatest need. It can take up to seven years before the amounts to be returned are calculated and repaid by suppliers. Recommendation: As the Department finalises its approach to its gigabit programme it should set out how it is incorporating the lessons learned from the superfast programme including: • Setting out clear programme specific objectives for the subsidised part of the future gigabit programme (the £5bn programme) • How it intends to improve its targeting to ensure it covers only those areas i
Government Response
Acknowledged
HM Government
Acknowledged
4.1 The government agrees with the Committee’s recommendation. Target implementation date: Spring 2021 4.2 The department continues to deliver to areas of greatest need and committed the first £4.5million from the new programme to upgrade sub-superfast premises in Scotland. 4.3 On 22 December 2020, the department published a description of its targeting approach for its new procurements, which will continue to prioritise sub-superfast premises, in the Planning for Gigabit Delivery consultation. The department commits to publishing progress against the UK Gigabit Programme’s milestones regularly. 4.4 The department is committed to incorporating lessons from its delivery of the Superfast Broadband Programme. It commissioned two independent evaluations of the Superfast Broadband Programme, the most recent of which included interviews with 40 local authorities and 16 suppliers. The results from this evaluation were published on 29 January 2021. This evidence, as well as BDUK’s own analysis, has also informed the design of the UK Gigabit Programme. 4.5 The department has also consulted local authorities and suppliers on their own experiences and sought their feedback on emerging and iterating programme design through regular stakeholder engagement events. 4.6 Examples of the improvements from Superfast Broadband Programme include the department centralising and automating a process for suppliers to regularly share their latest build plans, ready to inform targeting decisions for future procurements. Additionally, the department is extending the clawback period in the new contracts to 15 years to reflect the longer asset life of gigabit networks and incorporating a one- off recovery after seven years to bring forward the anticipated future value of clawback for the remaining eight years.