The super-deduction rewards companies that invest in new
equipment or infrastructure by cutting their tax bill.
Openreach has announced it is accelerating plans to deliver
Full Fibre broadband to the UK’s hardest to reach
communities, creating thousands of jobs, thanks in part to
support provided through the super- deduction.
The Chancellor of the Exchequer, , visited
Openreach’s Training Centre in Peterborough today and met
some of these new recruits.
Openreach are bringing direct fibre broadband to 25 million
UK premises by 2026, while helping to create 7,000 new
engineering jobs.
This will include delivering ultrafast, ultra-reliable
broadband to more than 6 million premises in the UK’s
hardest to reach areas. Recruitment by Openreach for 1,000
engineering jobs in 2021 is already underway.
During the visit, the Chancellor received a demonstration
on safe working from Openreach apprentices, before touring
its “open street” used for training engineers, where he was
able to have a go at installing broadband himself.
Chancellor of the Exchequer said:
Announcements of new jobs like the 7,000 being created by
Openreach show that our Plan for Jobs is working. As we
re-open the economy we are providing incentives for
businesses to invest and create jobs which is why we
introduced the super- deduction - the biggest 2-year
business tax cut in modern British history.
It was fantastic to meet some of Openreach’s new recruits
today and hear how they are rolling out full fibre
broadband to millions living in the hardest to reach
communities.
With a record £100 billion government investment in UK
infrastructure this year, I’m confident that more
businesses like Openreach will play their part in helping
us level up by investing in all corners of the UK.
Openreach CEO, Clive Selley said:
All the research shows that nationwide Full Fibre
broadband will deliver economic prosperity, higher
employment and a boost to the UK’s international
competitiveness. It’s also massively green.
Having said that, this is a hugely complex, nationwide
engineering project – second only to HS2 in terms of
investment - and it needs the full force of government
and industry to get the job done. That’s why we welcome
the Government’s support – particularly in the form of
the super deduction and apprenticeship levy - as it’s
helping us to build further, faster and create thousands
more jobs as we go.
Digital Secretary said:
We are levelling up the UK and taking hard-to-reach homes
and businesses off buffer mode with a £5 billion
investment in lightning-fast, next generation broadband.
I welcome Openreach’s ambitious plans to connect millions
more rural homes to gigabit speeds. It means our funding
can go even further to help those in need and will create
thousands more high-skilled engineering jobs as we build
back better from the pandemic.
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Announced by the Chancellor at Budget in March 2021,
the super -deduction allows businesses to claim a 130%
capital allowances on any qualifying plant and
machinery investments that they choose to invest in.
According to the independent Office for Budget
Responsibility, this will help boost business
investment by 10% - around £20 billion more per year
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As part of its programme, Openreach will roll out full
fibre optic broadband in over 1,000 UK locations
including market and coastal towns, villages and
hamlets – from Kirkwall in the Orkney Islands and
Cardigan in Wales, to Keswick in Cumbria and Allhallows
in Kent
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Spending Review 2020 committed £100 billion of capital
investment in 2021-22, a £30 billion cash increase
compared to 2019-20, with record levels of investment
for the railways, strategic roads, broadband networks
and flood defences. This was underpinned by the UK
National Infrastructure Strategy
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The National Infrastructure Strategy in November 2020
outlined how the Government is working with industry to
target a minimum of 85% gigabit-capable coverage by
2025, while seeking to accelerate rollout further to
get as close to 100% as possible
