Part Three – The Digital Revolution (Part Four)
Economic Unit
Artificial Intelligence
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The government should support the long-term development of skills in artificial intelligence, data science, and digital capabilities, including:
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Dedicated funding for AI apprenticeships (covering youth and lifelong learning).
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Making these programs accessible to at-risk industries, such as the creative sector.
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The government should promote UK businesses that adopt AI internationally (through the GREAT Campaign) and establish a dedicated program to support the export of UK AI products to global markets.
International Comparisons
International comparisons do not paint a positive picture of the UK’s situation.
In Europe, the countries with the highest gigabit broadband coverage are Denmark, Spain, and the Netherlands, each covering over 90% of premises.
As of July 2023, gigabit coverage in the UK stood at 40%, the lowest among EU countries except Greece.
The UK must learn from successful international models, or risk falling behind competitors, as weak digital infrastructure undermines foreign investment attractiveness and limits growth in disadvantaged regions.
Example for Emulation: South Korea
South Korea’s broadband infrastructure is among the most advanced in the world, with a penetration rate of 97.6% by 2023.
Digital exclusion was addressed from the outset, and by the mid-1990s, the South Korean government had launched an ambitious national broadband service program.
It also partnered with public–private entities to expand rural broadband, incentivizing providers through contracts that ensured reasonable returns on infrastructure investments per building.
The UK Approach: The “Gigabit” Project
To address these challenges, the UK government launched the Gigabit Project —
a £5 billion program initiated in 2021 to deliver gigabit broadband to over one million homes and businesses, especially in rural and remote areas.
The project is built on three main pillars:
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Public procurement to support gigabit broadband rollout through subsidized tenders in targeted regions, often including a co-funding component.
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The Gigabit Broadband Voucher Scheme, offering up to £4,500 to cover installation costs for households and businesses.
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Connecting public sector buildings as “GigaHubs”, creating platforms for providers to extend connectivity to surrounding communities.
Criticism of the Gigabit Project
The project has faced several criticisms:
A survey by National Broadband found that only one in ten local authorities with the worst broadband connectivity in the UK received any funding from the scheme.
Analysis showed that most funding went to more populated regions, where deployment is easier and cheaper.
Broadband Infrastructure: Challenges and Solutions
Coordination of Street Works
Street works form a crucial part of telecom infrastructure construction.
The government estimates they account for around 70% of the cost of fibre rollout.
Currently, separate permits are required for each street or excavation, imposing heavy administrative burdens on utilities and local authorities.
Solution: Introduction of “Flexible Permits”
That is, a single permit covering multiple small, standard works within a designated area.
Although initially part of the government’s plan, implementation was halted following objections from transport and highways authorities.
Underground Infrastructure: Damage, Security, and Digital Twin
Approximately four million excavations are carried out annually in the UK for installing, maintaining, or repairing underground assets.
One in every 65 excavations causes accidental damage to buried infrastructure (around 60,000 incidents per year).
Part of this stems from insufficient data on existing underground assets.
Currently, such data is stored across over 700 different organizations in the UK, with varying record quality.
The British Chambers of Commerce strongly recommends data sharing among institutions.
Another key concern is the lack of real-time information on who is accessing underground assets, amid rising risks of cyber intrusions or deliberate sabotage targeting critical national infrastructure.
Government Response:
The government has focused on data management and asset registration.
It has launched the National Underground Asset Registry (NUAR) in England, Wales, and Northern Ireland, and a similar initiative, VAULT, in Scotland — to create data-sharing platforms on the location and condition of buried assets.
According to project goals, by the end of 2025, a standardized, interactive digital representation of underground assets will be available nationwide.
