Decision details

·         To outline proposals to further extend Superfast Broadband (Phase 2) accessibility across South Yorkshire in order to make fibre broadband available to as close to 100% coverage as possible (excluding the majority of Sheffield City Centre because the European Commission has determined that as this is the ‘Urban Core’ of Sheffield, there is no market failure, and thus the use of public funding would represent state aid). Extending coverage brings significant economic opportunities for residents, business and the public sector whilst ensuring South Yorkshire does not fall behind other regions.

·           To seek approval for the Council to contribute £1.5m funding to support the extension of Superfast Broadband across South Yorkshire. The total funding for Phase 2 across South Yorkshire is approx. £3.5M, Sheffield’s portion is based on population. The recommended method of funding will be ‘cost neutral’ to Sheffield City Council

That the Leader of the Council:-

(i) notes and approves the proposals for Superfast Broadband Phase 2 as set out in the report and approves the funding for the project being added to the capital programme;

(ii) approves Sheffield City Council borrowing approximately £1.5m to fund its share of the costs of Superfast Broadband Phase 2, which will be combined with contributions from the other South Yorkshire Councils to create a total budget of approximately £3.5m;

(iii) notes that Phase 2 will only go ahead if all four South Yorkshire councils agree to provide the funding required;

(iv) approves Sheffield City Council borrowing its £1.5m contribution for Phase 2 on terms that mean its annual repayment sum is approximately £90k and is funded as set out in paragraph 5.2 of the report (Financial Implications);

(v) recognises that the Chief Executives and Finance Directors of all South Yorkshire Councils are agreed on this approach in principle, although individual Councils may fund their own contributions in different ways;

(vi) approves that the Phase 2 budget, OJEU procurement process and implementation are managed by Barnsley Metropolitan Borough Council on behalf of all the South Yorkshire Councils, and that these arrangement will be underpinned by an updated version of the existing Inter Authority Agreement that supports the Phase 1 programme; and

(vii) delegates authority, to the extent not already delegated by the Leader’s Scheme of Delegations and any Portfolio Scheme of Delegations, to the Director of City Growth in consultation with the Executive Director Resources to take such other decisions as are necessary to implement the objectives set out in the report.

The project will extend access to Superfast Broadband to as close to 100% of South Yorkshire as technically possible (excluding the majority of Sheffield City Centre because the European Commission has determined that as this is the ‘Urban Core’ of Sheffield, there is no market failure, and the use of public funding would represent state aid) and in so doing it will bring significant economic opportunities for residents, business and the public sector whilst ensuring South Yorkshire does not fall behind other regions.

A method of funding the extension of Superfast Broadband has been identified that is cost neutral.

There is an option to do nothing, however this would mean that over 23,000 premises across South Yorkshire, would be left behind and not have access to broadband speeds above 30mbps.  BDUK are pressing ahead to ensure the UK is one of the best connected countries and the opportunity to progress a further procurement may not arise for some time or even at all.  Leaving these areas behind will have a negative impact on the digital and wider economy of South Yorkshire compared to the rest of the UK.