Broadband Investment Could Help Save UK Economy
A report published by the London School of Economics has shown that an investment in broadband networks could help save the UK economy.
The report, part funded by IBM, highlighted that if £15 billion was to be invested into intelligent transport systems, broadband networks and a smart power grid, it could create more than 700,000 UK jobs.
Breaking it down to just the broadband sector, a £5 billion investment into the UK’s broadband networks could create more than 280,000 UK jobs. This means that Chancellor Alistair Darling promise in his budget to give £10 billion to the communication sector could result in the creation of around 560,000 UK jobs.
The London School of Economics also advised the Government to spend more on getting broadband connected to rural areas. Jonathan Liebenau, an LSE reader in Technology Management, said, “Our report shows that in this severe economic climate the right investment in ICT infrastructure would have a significant effect in creating jobs now and in stimulating productivity and innovation for the future.”
The report comes as millions of people are left out of work due to the UK’s worst recession since the war.
The report goes on to say, “Spurring investment in the UK’s infrastructure is an effective, immediate strategy to compensate for the downturn. However, while investments to improve the country’s traditional physical infrastructure such as roads, bridges and sewer systems, are necessary and important, investments in certain parts of the UK’s information and communication technology resources, or digital infrastructures, will have a greater positive impact on jobs, while at the same time laying the groundwork for sustained productivity and innovation.”