• 5 years in jail for criminals who illegally profit from owning British property
• new public information will make it easier for law enforcement agencies to tackle money laundering while reducing opportunities for criminals to hide
• new data reveals nearly 75% of UK property industry agree new register will lead to increase in transparency and reduce potential for illegal activity

Criminals who illegally profit from some of the UK’s most exclusive properties through the illegal use of overseas shell companies face up to 5 years in jail for concealing the true identity of their owners, under new draft laws laid in Parliament today (Monday 23 July).

For the first time, foreign companies owning UK properties will be required to reveal their ultimate owners on the world’s first public register of overseas entities’ beneficial ownership.

The register forms part of a wider crackdown on criminals laundering their dirty money in the UK and the new information it reveals will make it easier for law enforcement agencies to seize criminal funds. The penalties include:

• a ban on any foreign entity selling or leasing property without first publicly declaring its beneficial owner; an individual found to have committed this offence could face up to 5 years in jail and an unlimited fine
• individuals who fail to register overseas entities when instructed face up two years in jail and an unlimited fine
• individuals who knowingly try and deceive the register by providing false information face up 2 years in jail and an unlimited fine

New data also released today shows nearly three-quarters of those surveyed in the UK property market agree that this new register will lead to an increase in transparency and will reduce the potential for illegal activity.

Business Secretary Greg Clark said:

The UK is known around the world for its open and dependable business environment and this reputation is maintained by keeping under review our required high standards.

That is why we are introducing the world’s first public register which will expose the ultimate owners of overseas shell companies, giving authorities the information, they need to come down on criminals who launder their dirty money through the UK’s property market and to seize the proceeds of crime.

While the vast majority of foreign companies which buy property in the UK do so legitimately, this world-leading register will help ensure the UK remains a great dependable place to work, invest and do business.

Under the new draft laws, companies will also be required to provide annual updates to Companies House to ensure the information on the register is up-to-date.

UK government minister for Scotland Lord Duncan said:

For too long criminals have been able to use the property industry as a front for investing dodgy funds, hiding dirty money and evading the law. This stops now.

Most people who invest in property across the UK do so fairly, and legitimately, but the UK government is clear that there is no longer any room for those that seek to exploit the system to hide.

The register follows the introduction of the Criminal Finances Act 2017, part of the government’s Anti-Corruption Strategy, which provides new powers such as Unexplained Wealth Orders to law enforcement agencies to help them seize the proceeds of crime.

The UK has taken a leading role in the fight against money laundering and this world-leading register, which will go live by 2021, will reduce opportunities for criminals to hide.

More than £2 billion of criminal assets have been recovered under the Proceeds of Crime Act, while the government has recovered more than £3 billion extra since 2010 through recovery under additional powers.

1. A link to the legislation will be available shortly.
2. A shell corporation is a corporation without active business operations or significant assets. These types of corporations are not illegal, but they are sometimes used illegitimately, such as vehicles for tax evasion and money laundering.
3. The requirements for frontmen in complying with the overseas entities register are similar to those under the People with Significant Control regime, as set out in the draft legislation.
4. Research also published today about the potential impacts of this new register can be found here which surveyed industry stakeholders. This link will be available shortly.
5. According to recent research by Transparency International, over £4.2 billion worth of London properties are bought with suspicious wealth.

• Cost of rolling out fibre broadband to be slashed
• Remote rural areas prioritised for funding
• Stage set for full fibre switchover and the end of copper
• Increased access to spectrum for innovative 5G services

Hard-to-reach rural areas would get priority for new fixed broadband and 5G mobile connections as part of new measures proposed in a UK-wide plan for telecommunications.

The Future Telecoms Infrastructure Review (FTIR) was announced on the first day of the Royal Welsh Show in Builth Wells as part of the UK Government’s modern Industrial Strategy.

It proposes the changes that are needed to give the majority of the UK population access to 5G, connect 15 million premises to full fibre broadband by 2025, and provide full fibre broadband coverage across all of the UK by 2033. Full fibre infrastructure is vital to underpin 5G coverage.

At its heart is an emphasis on greater consumer choice and initiatives to promote quicker rollout and an eventual full switch over from copper to fibre.

The new approach is aimed at driving large-scale commercial investment in the fixed and wireless networks that are vital for the UK to remain globally competitive in a digital world.

DCMS Secretary of State, Jeremy Wright said:

We want everyone in the UK to benefit from world-class connectivity no matter where they live, work or travel. This radical new blueprint for the future of telecommunications in this country will increase competition and investment in full fibre broadband, create more commercial opportunities and make it easier and cheaper to roll out infrastructure for 5G.

The FTIR’s analysis indicates that, without change, full fibre broadband networks will at best only ever reach three quarters of the country, and it would take more than twenty years to do so. It also indicates that 5G offers the potential for an expansion of the telecoms market, with opportunities for existing players and new entrants.

The UK Government has long been clear about the importance of good mobile connectivity for the future prosperity of Wales’ economy.

Its £69million investment in delivering superfast broadband across Wales has seen Wales experience a rapid increase in access from 29.4% of homes and businesses in 2010 to 94.2% by December 2017.

It is also investing in new technologies such as the 5G rural testbed which Monmouthshire is part of and the £6m for a Local Full Fibre Network in Cardiff – all steps the UK Government is taking now as part of a commitment to realising the potential of 5G and full fibre, that will help to create a world-leading digital economy that works for everyone.

Secretary of State for Wales Alun Cairns said:

The UK Government wants the benefits of digital to be felt across our whole economy, throughout society, and in every corner of the country. Wales’ future prosperity depends on it.

The key to that prosperity lies in infrastructure. This review focuses on the importance of breaking down barriers to connectivity to ensure we can meet the demands of the digital age.

Yet the UK Government cannot work in isolation to deliver this transformation in Wales. That is why we are calling on the Welsh Government to work with us to deliver on these policies and to achieve our joint connectivity ambitions. We have long been calling for them to follow the UK Government’s lead in England and consider greater freedoms and flexibilities for the deployment of mobile infrastructure across Wales.

We hope that they follow through on their commitment to address the very real issue of mobile ‘not spots’ across the country and bring about planning reforms to support mobile infrastructure roll-out in Wales which are long overdue.

Not only does it make economic sense but it also supports the digital change that will transform our nation for the better.

Key recommendations from the FTIR include:

• New legislation that will guarantee full fibre connections to new build developments;
• Providing Operators with a ‘right to entry’ to flats, business parks, office blocks and other tenanted properties to allow those who rent to receive fast, reliable connectivity, from the right supplier at the best price;
• Reforms to the regulatory environment for full fibre broadband that will drive investment and competition and is tailored to different local market conditions;
• Public investment in full fibre for rural areas to begin simultaneously with commercial investment in urban locations;
• An industry led switchover (from copper to full fibre) coordinated with Ofcom;
• A new nationwide framework which will reduce the costs, time and disruption caused by street-works by standardising the approach across the country;
• Increased access to spectrum for innovative 5G services
• Infrastructure (including pipes and sewers) owned by other utilities such as power, gas and water, should be easy to access, and available for both fixed and mobile use;
• Ofcom to reform regulation, allowing unrestricted access to Openreach ducts and poles for both residential and business use, including essential mobile infrastructure;
• Alongside the FTIR, Government has also published a Digital Infrastructure Toolkit which will allow mobile networks to make far greater use of Government buildings to boost coverage across the UK.

The FTIR will drive competition and commercial investment in full fibre networks across as much of the UK as possible. However there will be some parts of the country where it will be unlikely that that the market will be able to deliver alone.

Nationwide availability of full fibre is likely to require additional funding of around £3 billion to £5 billion to support commercial investment in the final c.10% of areas. These, often rural areas, must not be forced to wait until the rest of the country has connectivity before they can access gigabit-capable networks.

The Government will therefore pursue an “outside-in” strategy, meaning that while network competition serves the commercially viable areas, the Government will support investment in the most difficult to reach areas at the same time. We have already identified around £200 million within the existing Superfast broadband programme that can further the delivery of full fibre networks immediately.

Next steps

We will shortly publish consultations on legislative changes to streamline wayleaves and mandate fibre connections in new builds. The conclusions of the Review will also form the basis of the government’s Statement of Strategic Priorities (SSP) to Ofcom, setting out the strategic objectives and outcomes that the regulator must have regard to in the exercise of its regulatory functions.

Notes to Editors

1. The UK has only 4% full fibre connections and lags behiHi nd many of our key competitors Spain (71%), Portugal (89%) France (c.28% and increasing quickly).
2. Full fibre networks are faster, more reliable, and more affordable to operate than than copper-based networks. 5G will deliver faster and better mobile broadband, and enable new applications in industry sectors like manufacturing, health and transport.
3. The strategy seeks to recognise differences across rural and urban areas, and develops solutions that are tailored to both. The Review concludes that the best approach is to promote competition and commercial investment wherever possible, and to intervene only where necessary.
4. Market competition should deliver full fibre networks across the majority of the UK if we get the conditions right (c.80%). c.20% of the country is likely to require bespoke solutions to ensure rollout of networks.
5. 5G is not just about faster mobile data connections, it could also deliver a wide range of new opportunities across industry sectors such as manufacturing, energy, transport and healthcare. The Government wants to encourage these new commercial opportunities through policy reforms, including making sure spectrum is accessible to all and used efficiently.
6. Running copper and fibre networks in parallel is both costly and inefficient, and a ‘fibre switchover’ strategy will be necessary to stimulate demand for fibre, to enable new networks to achieve scale quicker, and to ensure a smooth transition process for customers. The switchover process will be industry-led and timing will be dependent on the pace of rollout of fibre networks, and on the take-up of those networks. It is realistic to assume that switchover could happen in the majority of the country by 2030, but the timing will ultimately be dependent on the pace of fibre roll out and on the subsequent take-up of fibre products.
7. The EU’s new directive for electronic communications – the European Electronic Communications Code (EECC) – is currently under negotiation. It is likely to be adopted by the EU shortly. If adopted, we are minded to implement, where appropriate, the substantive provisions in UK law, on the basis that it would support UK’s domestic policy objectives. This will enable the extension of market review periods to five years and provide mechanisms to aid fibre network rollout in certain areas.

Mandatory full fibre broadband for all new build homes and a new priority to connect hard-to-reach rural areas are key measures proposed in a national, long-term strategy for UK telecommunications.

The new approach is aimed at driving large-scale commercial investment in the fixed and wireless networks that are vital for the UK to remain globally competitive in a digital world.

The Future Telecoms Infrastructure Review (FTIR), announced as part of the government’s modern Industrial Strategy, proposes the changes that are needed to give the majority of the population access to 5G, connect 15 million premises to full fibre broadband by 2025, and provide full fibre broadband coverage across all of the UK by 2033. Full fibre infrastructure is vital to underpin 5G coverage.

At its heart is an emphasis on greater consumer choice and initiatives to promote quicker rollout and an eventual full switch over from copper to fibre.

DCMS Secretary of State, Jeremy Wright said:

We want everyone in the UK to benefit from world-class connectivity no matter where they live, work or travel. This radical new blueprint for the future of telecommunications in this country will increase competition and investment in full fibre broadband, create more commercial opportunities and make it easier and cheaper to roll out infrastructure for 5G.

The FTIR’s analysis indicates that, without change, full fibre broadband networks will at best only ever reach three quarters of the country, and it would take more than twenty years to do so. It also indicates that 5G offers the potential for an expansion of the telecoms market, with opportunities for existing players and new entrants.

Key recommendations from the FTIR include:

• New legislation that will guarantee full fibre connections to new build developments;
• Providing Operators with a ‘right to entry’ to flats, business parks, office blocks and other tenanted properties to allow those who rent to receive fast, reliable connectivity, from the right supplier at the best price;
• Reforms to the regulatory environment for full fibre broadband that will drive investment and competition and is tailored to different local market conditions;
• Public investment in full fibre for rural areas to begin simultaneously with commercial investment in urban locations;
• An industry led switchover (from copper to full fibre) coordinated with Ofcom;
• A new nationwide framework which will reduce the costs, time and disruption caused by street-works by standardising the approach across the country;
• Increased access to spectrum for innovative 5G services
• Infrastructure (including pipes and sewers) owned by other utilities such as power, gas and water, should be easy to access, and available for both fixed and mobile use;
• Ofcom to reform regulation, allowing unrestricted access to Openreach ducts and poles for both residential and business use, including essential mobile infrastructure;
• Alongside the FTIR, Government has also published a Digital Infrastructure Toolkit which will allow mobile networks to make far greater use of Government buildings to boost coverage across the UK.

The FTIR will drive competition and commercial investment in full fibre networks across as much of the UK as possible. However there will be some parts of the country where it will be unlikely that that the market will be able to deliver alone.

Nationwide availability of full fibre is likely to require additional funding of around £3 billion to £5 billion to support commercial investment in the final c.10% of areas. These, often rural areas, must not be forced to wait until the rest of the country has connectivity before they can access gigabit-capable networks.

The Government will therefore pursue an “outside-in” strategy, meaning that while network competition serves the commercially viable areas, the Government will support investment in the most difficult to reach areas at the same time. We have already identified around £200 million within the existing Superfast broadband programme that can further the delivery of full fibre networks immediately.

Sharon White, Ofcom Chief Executive, said:

We welcome the Government’s review, and share its ambition for full-fibre and 5G networks to be rolled out right across the UK. The Government and Ofcom are working together, and with industry, to help ensure people and businesses get the broadband and mobile they need for the 21st century.

Next steps

We will shortly publish consultations on legislative changes to streamline wayleaves and mandate fibre connections in new builds. The conclusions of the Review will also form the basis of the government’s Statement of Strategic Priorities (SSP) to Ofcom, setting out the strategic objectives and outcomes that the regulator must have regard to in the exercise of its regulatory functions.

Notes to Editors

1. The UK has only 4% full fibre connections and lags behind many of our key competitors Spain (71%), Portugal (89%) France (c.28% and increasing quickly).
2. Full fibre networks are faster, more reliable, and more affordable to operate than than copper-based networks. 5G will deliver faster and better mobile broadband, and enable new applications in industry sectors like manufacturing, health and transport.
3. The strategy seeks to recognise differences across rural and urban areas, and develops solutions that are tailored to both. The Review concludes that the best approach is to promote competition and commercial investment wherever possible, and to intervene only where necessary.
4. Market competition should deliver full fibre networks across the majority of the UK if we get the conditions right (c.80%). c.20% of the country is likely to require bespoke solutions to ensure rollout of networks. 5G is not just about faster mobile data connections, it could also deliver a wide range of new opportunities across industry sectors such as manufacturing, energy, transport and healthcare. The Government wants to encourage these new commercial opportunities through policy reforms, including making sure spectrum is accessible to all and used efficiently.
5. Running copper and fibre networks in parallel is both costly and inefficient, and a ‘fibre switchover’ strategy will be necessary to stimulate demand for fibre, to enable new networks to achieve scale quicker, and to ensure a smooth transition process for customers. The switchover process will be industry-led and timing will be dependent on the pace of rollout of fibre networks, and on the take-up of those networks. It is realistic to assume that switchover could happen in the majority of the country by 2030, but the timing will ultimately be dependent on the pace of fibre roll out and on the subsequent take-up of fibre products.
6. The EU’s new directive for electronic communications – the European Electronic Communications Code (EECC) – is currently under negotiation. It is likely to be ​adopted by the EU ​shortly. If adopted, we are minded to ​implement, where appropriate, the substantive provisions in UK law, on the basis that it would support UK’s domestic policy objectives. This will enable the extension of market review periods to five years and provide mechanisms to aid fibre network rollout in certain areas.

• £780m investment in East Coast Main Line to be confirmed – giving passengers more seats and faster, more frequent journeys

• government will lay legislation to make £600m North of Tyne Devolution Deal a reality – giving people of Newcastle, North Tyneside and Northumberland a real say in their future

Investments in transport and science alongside positive developments in a historic devolution deal for the North East will be set out today as the Prime Minister prepares to host her Cabinet meeting in Gateshead.

Discussions at today’s Cabinet meeting will focus on implementing the government’s Modern Industrial Strategy, making sure the government delivers a Brexit deal works for every corner of the UK, and discussing the pivotal role of Local Enterprise Partnerships (LEPs) in boosting growth and prosperity across the Northern Powerhouse.

As part of the government’s commitment to overhaul transport in the region, the Prime Minister will confirm an investment of up to £780 million for major upgrades to the East Coast Main Line from 2019, to be completed in the early 2020s.

The work will take place over the next few years and will see significant improvements to platforms, tracks, signals and junctions across the route. Together with new Intercity Express Trains on the East Coast Main Line, this will mean passengers travelling on long distance journeys between northern towns and cities will benefit from more seats and faster, more frequent journeys between Doncaster, Leeds and Newcastle.

Building on the government’s devolution agenda for the Northern Powerhouse, the Prime Minister will also confirm that government will lay the legislation to formally conclude the North of Tyne Devolution Deal with Newcastle, Northumberland and North Tyneside. The deal, which marks an unprecedented transfer of powers from central government to local people in the North of Tyne, is worth £600 million over 30 years and is expected to generate 10,000 new jobs in the region.

Alongside this, as part of the wider economic transformation of the North East, Theresa May will announce a further investment of £180 million to drive forward innovation and cutting-edge research in the field of Offshore Renewable Energy Innovation and the High-Value Manufacturing Catapults, which has major facilities in the region.

Today’s announcements reaffirm the government’s commitment to position the Northern Powerhouse at the heart of its work to spread growth beyond London and the South East across the entire country, and to build a more prosperous and inclusive economy where everybody has the opportunity to reach their full potential.

Prime Minister Theresa May said:

Making Britain a country that works for everyone, in urban and rural regions, is a priority for my government – and a thriving economy across the Northern Powerhouse is central to that.

We have set out major policies and investments as part of our Modern Industrial Strategy to unlock the potential in the North – and more than any government in history, we are making sure that we are delivering the outcomes that really matter to people who live and work here.