Government announces broadband investment

The government "will be allocating extra funding for the broadband network, making sure everyone benefits from the communications revolution", according to the Chancellor of the Exchequer, Alastair Darling.

Darling is currently outlining the Budget in Parliament. Number 10 Downing Street also just tweeted: "Extra funding is allocated by Chancellor for digital investment to help extend the broadband network to almost every community".

The Chancellor has not yet said how much the government will be investing.

Just two days ago, the communication minister Lord Carter said there was no economic case for building a next-generation broadband network across 25-30 percent of the UK.

More soon.

UPDATE: Looking at the Budget report, it appears that the government has committed to the 2Mbps universal service obligation, although further details will only be available in the final Digital Britain report.

And here's the next-gen broadband stuff:

The Government also recognises the important role that next-generation broadband can play in developing the UK's digital communications infrastructure. In advance of the Digital Britain final report, the Government will review the powers and duties of Ofcom to ensure it can strike the right balance between delivering competition and encouraging investment in the communications infrastructure. In addition, the temporary increase in capital allowances for new investment, outlined above, will support businesses investing in the communications infrastructure. To stimulate economic activity, the Government has also approved 'Digital Region', a £100 million project led by Yorkshire Forward, which will roll out next-generation broadband to South Yorkshire.