The government have announced that the £530 million that was set aside to fund the 2Mb universal broadband is only half the required money to complete the job!

Last week a letter was sent to MPs from the Culture Secretary Jeremy Hunt that said that the £530 million rural broadband fund will not be enough and that a further £530 million would be needed to achieve the universal 2Mb broadband. This would need to be found either through private investment, local council funding or European funding.

Financial support for any new broadband plans will be done based on need with those bidding for the money required to show how they will offer universal 2Mb speeds and also offer 90% super fast broadband access.

Mr Lucas, the Shadow Business minister had the following things to say:

“Jeremy Hunt is managing down expectations and failing to provide the investment needed to foster growth. Universal access to broadband will not happen for many communities across the country until 2015 – three years later than Labour promised. The provision of quicker super fast broadband links by then will still miss one in 10.

Crucially, the Government is only putting in half of the public money required – meaning local authorities struggling to cope with government cuts in other areas have to find the rest or face being left behind.

The proposals will do nothing to halt the broadband divide across the UK and will act as a brake on business growth across the country just when it is needed most.”

BT are currently investing £2.5 billion in their own fibre broadband network, but this is largely just targeting urban areas where they will receive a better return on their investment, it is the rural areas where the governments money is going to be needed to help get broadband connections made available.