IoD calls for government to boost broadband investment

The Institute of Directors (IoD) has called on the government to boost broadband spending over the next four years to make sure the UK does not fall behind Europe in providing internet access to citizens.

The IoD has put 15 proposals to the government in a report called Route Back to Growth, which it says will help the UK become one of the most advanced economies in the world by 2020-2025.

One of the proposals asks the government to ring-fence infrastructure spending, including spending on transport, energy and broadband.

A spokesman for the IoD told V3 that, while the government has proposed an impressive broadband strategy, with a plan to deliver 2Mbit/s access to all by 2015, this may not be enough to match Europe's ambitious plans.

The European Commission has set a goal of providing all citizens with 100Mbit/s connections by 2020.

"The government's plan at the moment is good, but then will ours look empty when it is compared to Europe's?" said the spokesman. "2Mbit/s for everyone is not such an impressive target."

Other proposals in the IoD's report include lowering the top rate of income tax from 50 per cent to 40 per cent, and corporation tax from 26 per cent to 15 per cent, by 2020.

The business group said that it published the proposals in response to political and media calls for an emergency fiscal policy in the wake of a deteriorating economic outlook.

The Department for Culture, Media and Sport, which manages the UK broadband strategy responded to the IoD proposals by reinforcing its commitment to nation wide broadband.

"The Government is investing £530 million to ensure the UK has the best superfast broadband network in Europe by 2015. We want 90 per cent of homes and businesses to have access to superfast broadband and for everyone in the UK to have access to at least 2Mbps," it said.

The Mayor of London's office stepped up its campaign last week to get more of the London population online before the Olympics next year.