The Comprehensive Spending Review (CSR), delivered on 20 October
2010 by the Chancellor of the Exchequer, George Osborne, sets out
the Government's spending plans for the next four
years.
The CSR sets out how the Government will carry out
"Britain's unavoidable deficit reduction plan", and
describes decisions as to what is to be prioritised: department
budgets, other than health and overseas aid, will be cut by an
average of 19 percent over four years.
Notwithstanding this, there are a number of ways in which the CSR
highlights the importance of investment in science and technology
in order to spearhead and support sustainable economic growth in
the UK.
Science, technology and research
The CSR emphasises that £4.6 billion per year will be set
aside to ensure that the UK remains a world leader in science and
research by supporting the highest value scientific
research.
The Government seeks to increase the effectiveness of how the
science budget is allocated, intends to save £324 million a
year by 2014-15, and to reinvest such efficiency savings into UK
science projects. £200 million a year will be provided
by 2014-15 to support high growth companies and the
commercialisation of technologies, including funding a network of
technology development and innovation centres.
More detailed information on the Government's science budget
over the next four years will be available when business plans are
published by the various Government departments later in the
year. A reform White Paper, to be published by the Government
early in 2011, will provide greater clarity in respect of the
opportunities available to the science and technology sectors.
Digital infrastructure
It is acknowledged in the CSR that information and
communications technologies drive productivity improvements in both
the private and public sectors. Accordingly, £530
million will be invested to support the UK's broadband network
in order to benefit around two million households, and facilitate
the provision of super fast broadband in pilot areas such as North
Yorkshire, Cumbria, Herefordshire and the Highlands and
Islands.
The Government's announcement to sell public sector spectrum
will support new mobile communication uses, including mobile
broadband. The Government intends to hold an auction in
2011-12 for 800MHz and 2.6GHz spectrum, and it intends that at
least a further 500MHz of public sector spectrum below 5GHz will be
released over the next ten years for new telecommunication
uses.
On 25 October 2010, the Government published the National
Infrastructure Plan (NIP), which sets out a vision for the
infrastructure investment needed to support the UK's economic
growth. The key points in the NIP in respect of digital
infrastructure are summarised below.
- The Government's objective is for the UK to have the best super fast broadband network in Europe by 2015 and a functional level of broadband access for everyone in the UK.
- With the right broadband infrastructure, it is the Government's view that businesses will operate more efficiently and new jobs will be created, and that the private sector is best placed to develop the UK's broadband network. In particular, the NIP notes that BT and Virgin Media already have plans that should provide coverage for about two-thirds of the population by 2015, including the investment by BT of £2.5 billion in the fibre upgrade of its network.
- The Government has been considering measures to reduce infrastructure costs, for example infrastructure sharing, which will include granting access to other operators to BT's existing network of ducts and poles.
- A further National Broadband Strategy document, to be published this December, will elaborate on how the Government intends that its broadband vision will be realised.
Low carbon technologies
The Government commits to reducing the UK's carbon emissions. It is announced in the CSR that investment in low carbon technologies will help to place the UK at the forefront of a shift to a low carbon economy. Accordingly, more than £200 million is to be allocated to the development of low carbon technologies, recognising that such technologies have the potential to increase growth and help reduce carbon emissions.
Cyber security
The CSR refers to the Strategic Defence and Security Review (SDSR), which sets aside £650 million for an entirely new National Cyber Security Programme, to deal with the real and growing threat of cyber attacks. This is underpinned by an awareness that cyber space provides opportunities for future prosperity, and that cyber security is vital to securing that future. It is stated in the SDSR that investment in science and technology is essential to the UK's overall defence and security capability. Key areas of focus for investment include nanotechnology, cyber and outer space.
This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq
Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.
The original publication date for this article was 29/10/2010.