Andrew Sparrow's election briefing: Labour's broadband pledge dominates

<span>Photograph: Oli Scarff/AFP via Getty Images</span>
Photograph: Oli Scarff/AFP via Getty Images

Jeremy Corbyn promises free, full-fibre broadband for everyone in the country

Labour would deliver it by 2030 by nationalising part of BT, with remote and rural areas of Britain currently getting the worst broadband receiving the new service first. The ongoing cost would be paid for by a new tax on tech giants, with the free broadband saving families on average £30 a month, Labour says. In a speech in Lancaster Corbyn said that only 10% of Britain has access to full-fibre broadband, while in South Korea coverage is 98%. He said this showed how Labour would be using the power of the state to deliver an essential public service. He said:

Labour believes that the British people deserve the very best.

As a country we should be proud of our history of building treasured public institutions and services.

In the 19th century it was the public waterworks.

In the 20th century it was our fantastic National Health Service, freeing people from the fear of illness.

British Broadband will be our treasured public institution for the 21st century, delivering fast and free broadband to every home.

Only the government has the planning ability, economies of scale and ambition to take this on.

This is a mission for everyone to get behind.

My colleagues Mark Sweney and Patrick Collinson have a good analysis here of how feasible the plan is.

  • Labour’s plans has caused alarm in the City, where it was claimed that the party has massively underestimated the cost of its free full-fibre broadband offer and that the prospect of further nationalisation could halt further investment in the sector. The plan to nationalise Openreach, the broadband division of BT, caused particular shock because until last night Labour had claimed that it had no nationalisation plans beyond its existing commitments to bring rail, energy, water and the Royal Mail back in to public ownership. The BT chief executive Philip Jansen said Labour’s plans would not cost £20bn, as the party claimed, but closer to £100bn. Julian David, chief executive of tech trade association techUK, said Labour’s plans would be a “disaster” for the sector. He said:

Re-nationalisation would immediately halt the investment being driven not just by BT but the growing number of new and innovative companies that compete with BT.

  • But the Tories were also keen to stress their own plans to roll out improved broadband services, and there is likely to be some nervousness in CCHQ about how voters will react to the Labour giveaway. As a retail offer, it is big enough to get noticed – even by a public that seems bored and disengaged from the election. Corbyn’s analysis of the problem faced by the public is sound (Ed Miliband had a very pithy summary here), and ‘people like free stuff’ is not a bad guide to electoral behaviour. But this is a plan that marks an extension of the nationalisation agenda (other services being nationalised by Labour were once in the public sector; broadband wasn’t, because it did not exist in that era), and although voters might easily agree with Corbyn that the broadband service they are getting now is unsatisfactory, whether they think it would be any better under a monopoly state provider is another matter. The Tories claim a similar project in Australia has been a disaster. At this stage it is just too early to know how the electoral politics of this announcement will unfold.

Meanwhile

  • Johnson has escalated his attacks on Corbyn and Labour, claiming that that Corbyn’s plans are “absolutely terrifying”. In a short speech unveiling his battlebus, he sought to justify this charge with a serious of allegations about the opposition – many of which were partially or wholly untrue.

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