Part Three – The Digital Revolution (Part Three)

Economic Unit

Digital Connectivity: Broadband

Weak digital infrastructure has reduced the UK’s attractiveness for foreign investment and limited economic growth.
We call on the government to ensure that the rollout of gigabit internet is implemented in a way that benefits all parts of the UK.

To ensure long-term sustainability, the government must take steps to strengthen digital skills, protect underground infrastructure management, monitor the fibre broadband market, and expand flexible licensing systems to wider areas.

1. The government must act to reduce persistent geographic inequalities in the rollout of gigabit internet and ensure that the Gigabit Project has a clear strategy for remote and rural communities, including addressing affordability and cost issues.

2. The government should explore social tariff schemes for low-income areas to increase access to broadband services.
   These social tariffs should also be made available to small businesses and charities providing broadband access or digital skills training.

3. The government should show greater ambition in managing underground assets by creating a comprehensive digital twin for underground infrastructure and conducting an urgent review of unregistered or undocumented intrusions into national underground networks.

Digital Connectivity: Wireless Communications

Wireless connectivity across the UK remains uneven and unstable, and 5G infrastructure is not developing fast enough, preventing users from fully benefiting from this technology.
The UK should play a leading role in research and development of next-generation communications technologies, strengthen network infrastructure and planning, and empower local authorities to lead the digital transition.

1. The government should ensure the UK is at the forefront of global R&D, building a network that can become the world’s leading 6G standard by the early 2030s.

2. Network infrastructure should be reinforced through a policy framework that incentivizes investment and supported by a planning system that enables the UK’s 5G goals.

3. The government should implement business rate relief to support 5G infrastructure expansion, similar to the Full Fibre approach applied between 2017 and 2022.

Cybersecurity

Businesses must have confidence in the UK’s digital infrastructure, and the government must demonstrate its ability to manage national cybersecurity threats.
The government should create opportunities for businesses to access robust cybersecurity training and establish a cyber reinsurance scheme to act as the insurer of last resort.

1. The government should work with the insurance sector to create a cyber reinsurance fund to cover cyber risks and promote effective cybersecurity practices across all UK businesses.

2. The government should increase awareness and accessibility of cybersecurity training to give businesses digital confidence to handle security threats and maintain resilience against cybercrime.

3. Government guidance should be a clear benchmark for businesses to achieve, not an added burden on small or resource-limited companies.

Artificial Intelligence

We support the UK government’s approach to AI regulation and propose additional measures to build a framework of trust for businesses.
This framework ensures that businesses:

• Are aware of AI and understand how to apply it in their operations;

• Can provide meaningful feedback to government so that regulation remains innovation-focused;

• Can collaborate with other stakeholders to fully benefit from AI deployment.

• The government should create an AI Programme for SMEs to help business owners understand practical ways to apply AI to improve operations and appoint a Business AI Champion or Representative.