Digital Scotland Job Boost

25th May 2012

Around £500 million will be invested to deliver next generation broadband to communities and businesses across Scotland by 2015, potentially supporting thousands of jobs and boosting Scotland's economy, Alex Neil pledged this week.

The Cabinet Secretary for Infrastructure and Capital Investment was speaking as the Scottish Government published a procurement plan detailing how contracts will be awarded to reduce the digital divide and to deliver a significant improvement in speed and coverage of broadband for every community in Scotland by 2015.

The Step Change 2015 programme has identified funding of some £250 million from the public sector.

An action plan to deliver World-Class digital infrastructure for Scotland by 2020 was unveiled in January detailing steps to push Scotland to the forefront of the digital revolution.

Cabinet Secretary for Infrastructure and Capital Investment Alex Neil said: "We know faster internet access is vitally important, both for the economy and for people's day to day lives. It will ensure our communities, particularly those in rural and remote areas, remain vibrant, strong and connected.

"Today's procurement plan, backed by our major investment for faster internet connections will boost economic growth and connect communities wherever they are in Scotland.

"Research commissioned for BT has shown that next generation broadband investment could boost a town's economy by around £143 million; create 225 new jobs and 140 new start-up businesses. For a typical city, these figures are even more impressive. Investment can mean up to £296 million for a city's economy, around 430 new jobs and 320 new businesses.

"Working with local Government and private sector partners, the total funding package we are putting together is substantial - some half a billion pounds. I believe it has the potential to create thousands of jobs and I am determined to drive the maximum economic benefits possible from that spending.

"Today's announcement is an important step forward in that process, and we will now move towards commencing procurement and awarding a contract based on the actions set out. That will ensure faster broadband connections are on their way, no matter where you live in Scotland.

"Securing the digital infrastructure we all need is in the interest of the whole of Scotland - public, private, local and national government. By working with CoSLA, local authorities and economic partners, we will bring maximum benefits to our communities and make full use of their local expertise."

The Highlands and Islands project is already at an advanced stage and will reduce the digital divide across one of the most challenging rural areas in Scotland. This procurement plan therefore relates exclusively to our plans to improve digital connectivity across the rest of Scotland by 2015. The plan sets out the context, scope and key decisions concerning the procurement for the rest of Scotland and the issues that remain to be considered between now and the launch of the procurement exercise in September 2012.