CHINESE tech giant Huawei's equipment will be stripped from the UK's 5G network by 2027, adding billions to the cost and delaying the delivery of the high-speed mobile network.
The National Security Council took the decision - which will increase tensions with Beijing - after the impact of US sanctions raised concerns about Huawei's continued involvement in the UK's 5G infrastructure.
From next year, telecoms firms will be banned from purchasing new 5G equipment from Huawei.
They will also be ordered to shift away from the purchase of Huawei's equipment for full-fibre broadband networks over a period lasting up to two years.
The decisions were taken at a meeting of the National Security Council, chaired by Prime Minister Boris Johnson, on Tuesday morning.
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Making a statement in the Commons, Culture Secretary Oliver Dowden told MPs: "There is of course no such thing as a perfectly secure network, but the responsibility of the Government is to ensure that it is as secure as it possibly can be.
"That is why we conducted the telecoms supply chain review to look at the long-term security of our 5G and full-fibre networks.
"It set out plans to implement one of the toughest regimes in the world for telecoms security, one which would shift from a model where the telecoms industry merely follows guidance to a model where standards would be enforced by legislation.
"One that would require all operators to raise security standards and combat a range of threats whether from cyber criminals or state sponsored attacks."
Dowden added that the UK Government have been "clear eyed from the start" that Huawei was "high risk".
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In January, before the tough restrictions imposed by US President Donald Trump's administration, Huawei had been allowed to play a limited role in the 5G network despite risk concerns due to its links to the Chinese government.
Dowden acknowledged that the moves could delay the rollout of 5G by two to three years and potentially add £2 billion to the overall cost.
The UK Government had faced pressure from Tory backbenchers for a quicker approach to removing Huawei equipment, but Dowden insisted that the changes would mean that, by the time of the next general election, the UK would be on an "irreversible path" to a network free from the firm.
He said January's decisions to restrict Huawei's role had added a year to the timetable and cost up to £1 billion.
"Today's decision to ban the procurement of new Huawei 5G equipment from the end of this year will delay rollout by a further year and will add up to half a billion pounds to costs.
"Requiring operators in addition to remove Huawei equipment from their 5G networks by 2027 will add hundreds of millions of pounds further to the cost and further delay rollout.
"This means a cumulative delay to 5G rollout of two to three years and costs of up to £2 billion."
Lord Browne additionally stepped down as Huawei's UK chairman ahead of the firm being barred from the network.
A Huawei spokesman said: "When Lord Browne became chairman of Huawei UK's board of directors in 2015 he brought with him a wealth of experience which has proved vital in ensuring Huawei's commitment to corporate governance in the UK.
"He has been central to our commitment here dating back 20 years, and we thank him for his valuable contribution."
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The US sanctions were imposed on Huawei in May, banning the firm from access to products which have been built based on US semiconductor technology.
The NCSC concluded that the company will need to carry out a major reconfiguration of its supply chain as it will no longer have access to the technology on which it currently relies and there are no alternatives "which we have sufficient confidence in".
That means it is impossible to continue to guarantee the security of Huawei equipment in the future, Dowden said.
The UK is braced for the prospect of reprisals from China in response to the announcement.
GCHQ's protective signals intelligence network is on stand-by to detect and disrupt any attempt by China to mount cyber attacks on the UK in retaliation for the decision.
Officials say they are already dealing with a sustained high tempo of hostile cyber activity by state-sponsored actors including both China and Russia.
But Dowden said: "This Government will not be cowed by the comments of any other country.
"This decision has been made in the national security interests of this nation."
Huawei UK spokesman Ed Brewster said the "disappointing decision" is "bad news for anyone in the UK with a mobile phone".
"We remain confident that the new US restrictions would not have affected the resilience or security of the products we supply to the UK," he said.
"Regrettably, our future in the UK has become politicised - this is about US trade policy and not security."
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