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Broadband vouchers worth £3,000 for small businesses to help boost coverage

Small businesses will be given up to £3,000 worth in broadband vouchers to help boost coverage across Britain, under plans being considered for the Budget. 

Tens of thousands of companies would benefit from the scheme, according to Government proposals aimed at improving connectivity in rural communities. 

It is hoped that companies would group together to spend their vouchers, thereby encouraging providers to install broadband in areas previously ignored. 

The idea was quietly put out to consultation shortly after Christmas and a decision on funding is expected in the Budget on March 8. 

Ministers have privately expressed confidence the move will get the go-ahead, though such spending decisions are only finalised days before Budget day. 

A second idea being considered is to encourage councils to install broadband in their schools, GP surgeries and libraries to boost the area's connectivity. 

Tory MPs said they had been lobbying Philip Hammond, the Chancellor, for months for the voucher scheme and praised the impact it could have. 

Ian Liddell-Grainger, the Tory MP who chairs a parliamentary rural broadband group, said: “Every party in the UK has been saying this needs to be rolled out as fast as possible. It is hugely important and absolutely vital.

“The percentage of people who now work at home in rural areas is going up massively. Small businesses nowadays have to have high-speed broadband. You can’t run a business without it.”

The Telegraph has been running a Better Broadband campaign to highlight the damage poor internet connection has in rural communities across Britain. 

Using vouchers to allow businesses suffering poor internet speeds to find alternative solutions makes a lot of sens

Grant Shapps

The Government has proposed that every Briton should have the legal right to request access to internet speeds of 10mbps by 2020. 

However a recent report found that 1.4 million homes and offices across Britain – equivalent to 5 per cent off all properties – are still without broadband that quick.

A consultation published by the Culture Department in December 2016 proposed new ways that broadband rolled out could be sped up. 

One idea was to bring back a voucher scheme that helped more than 40,000 small businesses but wound up in October 2015. 

“We are considering a new full fibre connection voucher, to help connect businesses where it is uneconomic for network operators to connect individual business premises,” the consultation said. 

Handing smaller companies vouchers worth up to £3,000 on broadband providers acts as an incentive for companies to install connections.  

The idea is distinct from a more limited voucher scheme already in place that allows households with the worst broadband to get connected – something Number 10 has considered expanding recently. 

A second proposal would see councils use their network of public buildings to encourage broadband providers to connect up their area. 

By insisting their schools, GP surgeries and libraries should get connected the councils would create demand that will convince providers to act, it is argued. 

“Aggregated public sector demand may be sufficient to build a commercial case for a network operator to invest in deploying a local fibre network,” the consultation says. 

Mr Hammond, the Chancellor, is said to appreciate the importance of the broadband roll-out as he seeks to get the UK economy “match fit” for Brexit. 

A final decision is yet to be made by the Treasury, but Tory MPs and ministers privately are confided the voucher scheme will get approved despite the cost implications. 

Best and worst broadband speeds in UK - MAP

Grant Shapps, the former Tory chairman who leads the British Infrastructure Group of MPs, welcomed the proposals. 

 “Using vouchers to allow businesses suffering poor internet speeds to find alternative solutions makes a lot of sense,” he said. 

“With a range of technology from cellular to satellite internet, this means that companies don’t need to sit around waiting for Openreach to fix their connection speed.

 “Internet focussed around public property [also] makes a lot of sense. It’s a quick way for the government to help deliver high speed internet to a specific location and BIG warmly welcomes this potential budget measure.””

“During the past year the British Infrastructure Group of MPs (BIG) has seen some welcome determination from the government to fix some our country’s broadband gaps. These budget proposals would be a very positive step in the right direction and we hope the Chancellor will act on them.”