Yorkshire broadband project could cost taxpayers

The Digital Region scheme set up to provide fibre broadband and superfast speeds to nearly all homes and businesses in South Yorkshire could end up costing taxpayers in the region some £50 million.

This follows its managers posting huge losses for the second year running, with the organisation's £27 million EU grant in the running to be revoked after it failed to meet strict regeneration criteria.

According to the Yorkshire Post, Digital Region posted losses of over £22 million throughout 2011.

In a statement, the council authorities behind the scheme admitted there was an element of risk in the plan but emphasised the potential benefits it could have for the area.

"All stakeholders are confident the project will successfully deliver a market-leading scheme that it vital for South Yorkshire's future," said a spokeswoman.

She added that the company's proposals fit in well with the government's aims to deliver superfast broadband across the country, with Jeremy Hunt recently reiterating the coalition's commitment to delivering this service.

Digital Region hopes to provide some 1.3 million people and 546,000 homes with access to fibre broadband.