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Tech and telecoms under a Labour Government

A quick implementation of online safety rules, strengthening the framework for AI and reforms to the planning system are likely to take priority over changes to connectivity policy

Unlike in 2019 (when Labour pledged free full fibre broadband for everyone by 2030), relatively little was said about telecoms during the campaign. What was said lamented the slow rollout of gigabit broadband (which doesn’t seem to acknowledge the pace at which coverage has ramped up in recent years), and low 5G investment. A commitment to maintaining the growth duty extended to Ofcom under the Conservatives, could see changes to economic regulation that better supports growth and investment. Some may be left underwhelmed with just a renewed push to meet already-agreed connectivity targets, but will be encouraged that Labour has progressed from the more radical idea to nationalise broadband, recognising the role competition is playing in driving investment and rollout.

Central to Labour’s overall campaign has been the need to reignite the UK economy to drive productivity and create jobs. It sees investment in infrastructure as key to this mission but that red tape is holding things back. Promising to designate data centres that support AI and cloud computing as ‘nationally significant’ and easing planning rules for building on protected green belt land are clear commitments to this cause. Certainly any planning reform that also help speed up the deployment of networks would be music to the ears of operators, who have long called for more support of this kind.

Labour seems particularly alive to current issues in the digital economy and it’s here where we’re likely to see change first. Building on the Online Safety Act, banning explicit deepfakes, and giving coroners the power to see information held by tech companies after a child's death are all set to be enacted quickly. Labour also looks set to take a tougher stance on AI, moving away from the recently established voluntary testing agreement to a statutory regime for the most powerful foundation models. Unlike the Conservatives, nothing was said on the banning of smartphones for under 16s, however the party has said it is open minded about the banning of social media for this age group. Given the practicalities and contentiousness of such a policy, it’s not something that’s likely to happen as quickly given the need to widely consult. 

Though there is a sense that Labour may bring a greater focus on consumer protection to government, the manifesto made no mention of some of the affordability-related issues its MPs have been vocal about. A previous promise from Labour to crack down on mid-contract price rises has already been instigated by Ofcom, while statements to push the regulator to tackle so-called ‘loyalty penalties’ faced by telecoms customers that don’t switch and to move from voluntary to mandated social tariffs for broadband both didn’t feature during the campaign (other than in Scotland for a fund to help over-75’s pay for their TV licence or telecoms bills). With an ease in cost of living pressures, these may naturally fade away as priorities.

With 12 secretaries of state in the past 14 years, the importance of the prospect of some stability in office shouldn’t be underestimated. DSIT looks set to become the digital centre of Government and play a prominent role in delivery. Labour has been somewhat critical of the UK’s sectoral regulators, believing them ill-equipped to handle the development of new technologies and signalling a new, cross-government Regulatory Innovation Office to offer help. This regulators’ regulator could reflect some sort of in-house version of the existing Digital Regulation Cooperation Forum. Change here is likely to take time to bring about and Ofcom, the CMA, the FCA and the ICO may well feel aggrieved given the efforts they’ve made recently to collaborate.