World-class broadband is key to beating recession

Broadband infrastructure is vital to the UK economy

A world-class broadband network will be required to enable Britain to re-skill its way out of the recession, according to the Cabinet Office white paper New Opportunities - Fair Chances for the Future.

The plan underlines prime minister Gordon Brown's belief that the UK must act now to invest in the skills needed to take advantage of the revival of the global economy when it comes.

The government forecast is that "new production patterns driven by technological changes will also deliver more opportunities" as the continuing development of the emerging economies of China, India and Brazil fuel the growth of a global middle class expected to double to more than a billion people within the next two decades.
"This growth, combined with cultural changes, will in turn increase disposable incomes in these countries. The direct result is a wealth of export opportunities for UK goods and services," said the white paper.

"We need to support the businesses and industries that are equipped to deliver the products and services that these export markets demand."

The paper said that the rise of the internet as a business tool, and more efficient global supply chains, means that there is no longer a need for every element in the production process to be located together and it would increasingly take place in different geographical locations.

"In the UK, this means more opportunities in the knowledge-intensive areas in which we excel, such as research and development, specialist manufacturing and business services," it said.

"It also means that many of the high-skilled jobs needed to deliver services to the emerging global middle class can occur anywhere in the world, creating further opportunities for UK workers in markets and industries in which we are already strong.

"Clearly, grasping these opportunities depends on having a truly nationwide, high-quality business and technological infrastructure that facilitates international working, including a world-class broadband network."

The paper also called for more action to deal with the digital exclusion affecting some 15 per cent of the adult population.

"Providing them with ICT skills is a key mechanism for ensuring that all can access new opportunities in the global economy," it said.