(BERR) Budget '09 and Digital Britain

Today's Budget confirms Government plans to deliver a Universal Service in broadband at 2 megabits per second by 2012. The Government will also consult with the BBC Trust on how the emerging under-spend from the Digital Switchover Help Scheme can be drawn on to fund roll-out and take-up.

Budget '09 also underlines the Government's commitment to helping business take full advantage of the opportunities offered in the creative industries by announcing a review of Ofcom's powers and duties to ensure it can strike the right balance between supporting competition and encouraging investment.

Business Secretary, Lord Mandelson said:

"I often stress the need for bridges to our economic future - this is one of the most important. And I believe there's a clear, strategic role for government to help make it a reality."

"We need to make sure that transformational technologies like broadband are genuinely available to virtually everyone. And we need government action to help drive that change and ensure UK firms have the capacity to compete for the economic opportunities it brings."

Minister for Communications, Telecoms and Broadcasting, Stephen Carter said:

"The UK economy needs a digital infrastructure and it needs higher levels of connectivity and greater levels of participation.

He added:

"The Digital Britain commitments in today's Budget will establish a 2mbps Universal Service as a baseline for both Next Generation Networks and for the next generation delivery of public services."

At 2mbps, internet users are guaranteed a quality of broadband capable of offering a wide range of applications, including the majority of public services and video-rich content such as the BBC iPlayer.

Providing Universal Service in broadband and promoting take-up will help boost learning and skills development and drive innovation within the creative industries. No country in the world is currently offering a Universal Service in broadband at a speed this high.

The Government has consulted a design group made up of network experts on the best and most cost -effective ways of delivering a universal service via a range of solutions, including wired and mobile networks. Their conclusions, which will inform the detailed scheme design to be published in the Digital Britain Final report, suggest that for at least some groups of currently underserved users a leap-frog to next generation superfast broadband may be the most economical solution.

The Budget also approves 'Digital Region', a £100 million project led by Yorkshire Forward, which will roll out next generation broadband across the South Yorkshire region, stimulating economic activity through high-speed connectivity.