"We will ensure Britain remains at the forefront of the digital revolution"

McFadden: Digital Britain will be fundamental to Britain’s future

Look around and you will see that we are already living and working in a digital nation. Our financial institutions, industries, public services, transport networks and energy grids all rely, in one way or another, on digital infrastructures. At home too, many of us take for granted the technology that gives unprecedented access to entertainment, goods and services and a wide range of social networks.

Following progress inconceivable 10 years ago, Britain is one of the most advanced digital economies in the world. The digital sectors now account for £1 in every £10 that the economy produces every year. Many of our digital and communications companies rank among the most creative and successful globally. And the UK’s sophisticated and technologically advanced consumers help to drive trends worldwide.

But we cannot afford to be complacent. The scale and importance of digital communications to 21st century prosperity is reflected in the focus of our counterparts abroad. Australia is creating a nationwide high-speed communications network; high-speed broadband and smart grid technology formed an important part of the US administration’s recent stimulus programme.

Elsewhere in Europe, Germany, Finland and France have all adopted national broadband or wider digital strategies. The economic downturn has also brought into focus the need to concentrate investment in areas that will create jobs and wealth for generations to come.

The Digital Britain report, published on 16 June 2009, set out the government’s plan to sustain the country’s position as a leading digital economy. A Digital Britain will be fundamental to building Britain’s future ­ creating modern infrastructure, upgrading skills capabilities, converting research and innovation into market-leading products and services and establishing smarter and more joined-up government. We believe this will result in a stronger, fairer and more innovative society.

To achieve this, we need to ensure that all those who want to participate have the capability to do so. We are taking a number of steps on that front. First, we are committed to providing universal service broadband at 2Mbit/s by 2012. This is a floor for connectivity, not a ceiling for ambition, and it goes further than any country in Europe has on universality. Second, recent months have seen an energetic market-led rollout of next-generation, superfast fixed networks. But it is clear that, unaided, this will not provide superfast broadband to the final third of the population. So, we have proposed an extra 50p charge on all fixed copper lines to help ensure that next-generation broadband is delivered to the third of the country where, currently, the market will not reach on its own.

Another pivotal element of the strategy is to increase the online delivery of public services ­ for individuals and businesses ­ which will require both universality of availability and universality of participation. At present, the take-up of e-government services by individuals is only slightly higher than the European average and take-up by businesses, particularly small and medium-sized companies, is slightly below average. In establishing universal broadband, the potential benefits of e-government are enormous ­ not least the opportunity for businesses and startups to comply with government regulation online, or to achieve cost efficiencies by using the internet to communicate with customers.

However, these measures will only reach their full potential if we can ensure that the entire population is empowered to access and use digital media. It is important that we have enough people with the right skills in the right place and at the right time to develop and apply the new technologies. Our aim is to drive UK digital skills into the top three globally. To achieve this, we will invest in skills and learning so that the healthy pipeline of talent starts in primary school and carries on through to university and beyond.

We endorse the view of the Rose Review of the curriculum, which recommends upgrading IT to a core competence alongside English, maths and personal development. At secondary level, major government reforms coming into force in the next year will mean a much greater emphasis on applying digital knowledge in a real-life context. The new diplomas for 14 to 19-year-olds in IT and creative and media will help swell the numbers of those entering the professional digital workforce with the desired mix of practical and transferable skills, industry knowledge and
business awareness.

I believe that as a government we can play a critical role in establishing the framework needed to create and sustain a modern digital economy and society. But I also have little doubt that much of the Digital Britain vision will be achieved by the hard work, expertise and creativity of the digital and communications industries themselves.

By working in partnership, thinking strategically and acting proactively, we will ensure that Britain maintains its place at the forefront of the global digital revolution.

Pat McFadden is minister for business, innovation and skills