Yorkshire's Digital Region broadband scheme hit by spiralling costs
Local authorities in Sheffield, Doncaster, Rotherham and Barnsley are seeing costs associated with their Digital Region broadband improvement scheme rise to potentially problematic levels.
A report from the Yorkshire Post has revealed that the councils' expenses associated with the scheme could rise past £50 million, with the project recently posting significant losses for the second year running.
The councils have been forced to write off the multimillion-pound setup loans made in 2009, while further bailout costs could be incurred if Digital Region's £27 million EU grant needs to be returned, as could prove to be the case.
Through Digital Region, authorities hope to bring superfast connection speeds of between 40Mbps and 100Mbps to the UK over the coming years.
Despite the troubles seen thus far, the councils said they still believe the initiative will be a success, while underlining the important role it can play in helping to meet government broadband improvement targets for the UK as a whole.
A spokeswoman said: "All stakeholders are confident the project will successfully deliver a market-leading scheme that it vital for South Yorkshire's future."