Budget 2012: Digital and creative industries bolstered
MANCHESTER has gained the biggest share of a £100m pot for ultra-fast broadband, the chancellor announced.
The city secured £12m for the rollout of an ultrafast broadband network, which it plans to use to roll out to 11,000 businesses and 224,000 homes. High-speed wireless connections will also be installed across key public areas and along major transport corridors.
Manchester’s project is also aimed at improving connectivity in areas such as Wythenshawe and East Manchester, where broadband connectivity rates are lower.
Sir Richard Leese, leader of Manchester City Council, said: “The Manchester Digital City package will result in high speed internet access for all of our residents and businesses, promoting social inclusion and stimulating economic growth, particularly in the digital and media industries.
“We’ve repeatedly stressed the importance of improved transport infrastructure to the city’s future, but leading edge digital connectivity is every bit as essential. We aim to be one of the world’s top 20 digital cities by 2020 and this funding will help propel us along that path.”
However, a bid for cash from the same pot by Liverpool was unsuccessful. CBI regional director Damian Waters described this as “very surprising to say the least”.
“We hope this can be changed as a matter of urgency.
“Liverpool is one of the most important hubs of UK trade with very bright ambitions with its plans for Superport and Ocean Gateway. It is a key growth driver for our region and must get superfast broadband as a matter of priority.”
Mr Osborne also announced a series of tax breaks for video game companies, and those working in high-end animation and TV production.
Saying he wanted to ensure “Wallace and Gromit stay in the UK”, the chancellor introduced tax reliefs first promised by his Labour predecessor but never delivered.
The gaming industry had lobbied hard for the incentives in the face of growing competition from Canada and Ireland, whose tax regimes were encouraging many multi-million dollar computer game firms to relocate their development hubs.
Mr Osborne said: “The film tax credit helped generate over £1 billion of film production investment in the UK last year alone.
“Today I am announcing our intention to introduce similar schemes for the video games, animation and high-end TV production industries.
“To be Europe’s technology centre we also need the best technology infrastructure. Our plans will deliver some of the fastest broadband speeds in the world. The fastest digital speeds in the world available in our cities, with the most connected countryside in Europe – and the most creative digital content anywhere.
“That’s what a modern industrial policy looks like.”
