Source · Select Committees · Public Accounts Committee
Recommendation 17
17
The National Audit Office report noted that the Department estimates £0.9 billion of funding will...
Conclusion
The National Audit Office report noted that the Department estimates £0.9 billion of funding will be returned by suppliers where capital expenditure was lower than expected or actual take-up of superfast broadband is higher than expected.45 The Department told us that because some of this represents future profits measured over a 7 year period from contract completion, it has not yet all been received and it will monitor returns to Local Authorities and central government over that time.46 While £0.9 billion of money to be returned represents a significant proportion of the overall public subsidy of £1.9 billion provided under the superfast programme, the Department said it believed it had targeted premises as well as it could with the data available.47 41 National Infrastructure Strategy 2020, p. 31 42 Qq 16–17, 36, 153 43 Qq 156 44 Qq 36, 156 45 C&AG’s Report, para 1.12 46 Qq 16, 28 47 Qq 14–15, 17 Improving Broadband 13 2 Protecting consumers Consumers in rural areas
Government Response
Acknowledged
HM Government
Acknowledged
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.