Digital strategy can give £1.5bn boost to economy
BRITAIN’S economy could be boosted by £1.5billion by 2020 if as few as 30 towns are given access to better digital infrastructure and technology, according to a report.
The study, which assesses a Digital Communities pilot scheme run by mobile phone giant O2 in St Helens last year, also argues that replicating the scheme in just eight towns could boost the North’s economy by £410million in four years, helping to narrow the economic divide with the South.
Entitled Rebalancing Britain: Inspiring Thriving Digital Communities, the report suggests that with smartphone ownership doubling in the past five years, every local authority should have a digital strategy.
It recommends that digital should be a key pillar in City devolution deals; that Local Enterprise Partnerships – the voluntary partnerships between local authorities and businesses set up in 2011 by the Department for Business, Innovation and Skills – should each have a dedicated digital expert; and that the Government should prioritise the development of digital infrastructure.
O2’s study argues that without reform of planning laws and the Electronic Communications Code – rules by which telecoms companies can build and maintain networks – ‘coverage and capacity difficulties will become more commonplace and the national and local digital economy will suffer’.
As well as O2, rivals EE, Vodafone and Three are campaigning to cut the rent they pay for phone mast sites and are urging the Government to help them avoid being held to ransom by farmers trying to ramp up charges for access.
The pilot scheme, which ran from October to December last year in partnership with St Helens Council, was designed to show how connectivity can help communities across the UK prosper. Eight local small firms underwent a ‘digital makeover’ with free consultations on the latest technology to help them grow.
A disused shop in the town centre was turned into an O2 ‘digital hub’ and more than 1,200 people attended more than 40 advice sessions, from digital careers clinics to social media surgeries for small and medium-sized firms, and online safety sessions for parents.
O2 also set up two wi-fi hotspots in the town centre and at a local col- lege, which were used by more than 5,000 people and businesses. Meanwhile, 30 grants of £300, half-funded by the local Chamber of Commerce, were given to digital start-ups.
The report claims that longer-term measures in the pilot could, if implemented, inject £46.3million into the St Helens economy by 2020, which represents ten per cent extra growth compared with the current economic trajectory. It said the growth would be driven by increased job creation, enhanced workforce pro- ductivity and supply chain multiplier effects. Wholesale and retail trade, business support services and professional services would see the biggest rise in extra jobs.
It also said that due to improved infrastructure and increased digital engagement in the town, St Helens moved 17 places up the Digital High Streets Index, which was created by the Future High Streets Forum and announced by the Government in March 2015.
Mike Palin, chief executive of St Helens Council, said: ‘We feel we’re at the forefront of a digital revolution by showing what’s possible.’
Dan Butler, owner of Unite Healthcare, which provides home care to patients with dementia and learning disabilities in Merseyside, was given a free digital makeover, including digital skills training, tablets and mini printers to work on the go. He said this cut his administration time from two hours to 30 minutes a day, improved staff communication and almost doubled daily patient visits.