Labour 'land grab' reform warning as incomes 'cut by up to 90%'

A coalition of landowners and rural groups has told the Government to abandon a controversial expansion of telecoms powers, warning that it risks wrecking incomes and derailing the rollout of 5G technology. A consultation on plans to expand the Product Security and Telecommunications Infrastructure (PSTI) Act has closed, and a decision is expected within weeks. The latest proposals build on the Electronic Communications Code, introduced in 2017, which aimed to cut costs for mobile operators by cutting the rents they pay to host masts and other infrastructure.

But landowners now say that the changes have backfired on farms, schools, churches, hospitals, local authorities and small charities, with incomes plummeting by as much as 90% due to "a valuation model akin to compulsory purchase". Legal disputes have also exploded - with figures suggesting that there have been more than 1,000 since the changes came into force, compared to just 33 between 1984 and 2017. Experts claim that the approach has triggered conflict, driven site providers away and left the UK falling behind its rivals as regards connectivity.

A cross sector group told Lord Livermore, financial secretary to the Treasury, of "a looming regulatory risk that could seriously undermine the UK's 5G rollout, deter private investment, and jeopardise the Treasury's wider ambitions for economic growth and connectivity" in a letter seen by The Express.

Reforms "are now actively discouraging land and property owners from hosting mobile infrastructure, slowing the pace of deployment and undermining Britain's growth prospects," the complainers added.

"By shifting to a valuation model akin to compulsory purchase, rents to landowners - including schools, NHS trusts, councils, churches, charities and farmers - have been cut by up to 90%.

"Landowners are now increasingly unwilling to host infrastructure, and where there is no land available, rollout simply does not happen.

"We would be more sympathetic towards the reforms had the rent reductions led to greater investment, faster rollout and more affordable consumer bills, as initially promised. But this hasn't happened."

The letter, signed by Gavin Lane, Deputy President of the CLA; Rachel Hallos, Vice President of the NFU; Thomas Evans, Executive Vice President of AP Wireless; and Melanie Leech, Chief Executive of the British Property Federation, also read: "We believe the Government should now pause and swiftly review whether the 2017 ECC reforms are working. That review should consider not just land valuation, but also litigation volumes, market structure, investment flows and real-world rollout outcomes.

"Failing that, we are at least urging the Government to delay implementation of the regulations by at least six months to allow transitional provisions to apply fairly and avoid further unintended consequences.

"This is a textbook case of a well-intentioned policy delivering the opposite of what was intended in a telecoms market that has changed beyond recognition."

A DSIT spokesperson said: "Our priority is to continue delivering high quality 5G networks across the UK, which is critical to boosting growth and improving public services for the British people.

"We want to ensure the measures to deliver the infrastructure the country needs to grow work for landowners, operators and communities, which is why they were subject to a technical consultation which closed on 2 July.

"All responses to the consultation are now being considered and the Government's response will be published later this year."