Superfast broadband scheme to boost North Yorkshire economy by £220m

The first phase of the Superfast North Yorkshire project, which is helping to extend the availability of high speed fibre broadband, has contributed £36m to the local economy and this could grow to £220m in the next two years.

The figures are based on a variety of factors including changes in internet use by businesses connected to fibre and the resulting impact on turnover, profitability and employment.

The independent analysis by Regeneris Consulting showcases several benefits for businesses connected to the new fibre broadband network. The report highlights that a large number of SMEs have become more productive and grown as a result of their new fibre connection. The analysis indicates that one new job has been created for every ten firms connected to the network.

The report also claims that for every £1 invested by Superfast North Yorkshire, £7 will be added to the economy of North Yorkshire within the next two years.

Phase one of the Superfast North Yorkshire fibre broadband deployment was completed in spring of this year. Together with the commercial roll out of high speed broadband, the project has ensured that more than 90% of homes and businesses across the county can access fibre broadband with 86% able to order superfast broadband with speeds of 25Mbps or above.

The research also looked at the impact of Superfast North Yorkshire’s business support programme, which is specially tailored to offer free business support and advice on a variety of topics designed to help businesses harness the potential of high speed fibre broadband

This programme has supported more than 1,000 businesses in North Yorkshire. Regeneris Consulting’s survey of these businesses found that a third of respondents reported an increase in their turnover as a result of the business support. Half of them have gained new customers and more than a quarter have seen improved profits as a result of the support received.

Overall, the business support programme has made an estimated contribution of £17m to the North Yorkshire Economy.

Carl Les, leader of North Yorkshire County Council, said: “This is fantastic news for North Yorkshire, it is great to see North Yorkshire businesses taking advantage of public investment in superfast broadband to spearhead the growth of our economy.”

Ed Vaizey, Digital Economy Minister, added: “From Ainderby Steeple to Masham, and from Hardraw to Leyburn, the Superfast North Yorkshire project has done a remarkable job in transforming the digital landscape of the region. Superfast broadband is a catalyst for economic growth, which is why Government, together with local authorities around the UK, is investing more than £1 billion to take superfast coverage to 95 per cent of the UK by 2017.”

Bill Murphy, BT’s managing director of next generation access, also commented: “The report findings are a clear indication that faster broadband is a catalyst for growth, particularly in a predominantly rural area like North Yorkshire.

“Faster broadband breaks down the barriers to doing business in the digital world with developments like online trading, which helps to empower those small businesses to find new markets, sell new products, try new models and compete on an equal footing with larger businesses.”

Work is well underway on the next phase of the Superfast North Yorkshire project with £8m in additional public sector funding helping to make high speed broadband available to another 11,100 homes and businesses by the end of 2016.

The Superfast North Yorkshire project was the first in the UK to deploy fibre broadband using the Government’s Broadband Delivery UK funds following the signing of the original £36.4m contract between North Yorkshire County Council and BT in July 2012.

BT was chosen as the project’s private sector partner following an extensive selection process by the county council. BT is contributing £10m towards fibre deployment in “non-commercial” areas whilst the county council is using its £17.8m share of BDUK funds as well as up to £13m of its own funds. A further £8.6m is coming from the European Regional Development Fund for the first phase of the project.

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