Source · Select Committees · Public Accounts Committee
Recommendation 12
12
Not Addressed
BDUK lacked adequate cost information from operators for managing government-funded programme spending.
Conclusion
BDUK told us that costs had been one of three areas where it had wanted improved information from the operators. Although it had previously received information from DMSL on costs, the information DMSL had provided had not allowed BDUK to manage the spending profiles for the government-funded elements of the programme. BDUK had now signed an amendment to the funding agreement with DMSL to receive cost information which would allow it to do this.21 The benefits of the programme
Government Response Summary
The government states the 95% coverage target is expected to be met ahead of schedule and within budget, with the Shared Rural Network's capped grant fund ensuring the government's financial contribution for Total Not Spots does not exceed £300.7 million. The response focuses on general financial risk management and current progress rather than BDUK's specific amendment for cost information mentioned in the conclusion.
Government Response
Not Addressed
HM Government
Not Addressed
1.1 The government agrees with the Committee’s recommendation. Target implementation date: December 2024 1.2 Deployment progress from the Office of Communication (Ofcom) show UK geographic coverage from at least one mobile network operator (MNO) is making excellent progress since Building Digital UK (BDUK) reported to the committee in April, with indications that the overarching 95% coverage target will be met ahead of schedule and within budget. 1.3 The Shared Rural Network’s (SRN’s) Grant Agreement structure moves the majority of the financial risk for delivery outside government. Using a capped grant fund for the Total Not Spot (TNS) element of the programme ensures the government’s financial contribution cannot exceed £300.7 million over the programme. MNOs must remain within this grant envelope or use their own funds to deliver their 1% coverage target. 1.4 For the Extended Area Service (EAS) project, delivered with the Home Office, BDUK is working closely with its partners to ensure that maximal benefit can be achieved within the allotted programme funding. 1.5 SRN is technology neutral. If technology can meet the Department for Science and Innovation and Technology’s (the department’s or DSIT’s) minimum speed requirements within the terms of the grant agreement, it will be eligible for subsidy. The programme delivers to Ofcom’s standard of ‘good network service’ with speeds of at least two megabits per second (Mbps), though speeds of at least six Mbps are expected in most of the network’s footprint. In all cases, the government’s delivery partners have the freedom to choose the best technologies to deliver their targets with while maintaining value for money.