New modelling has shown that the UK economy could gain more than £8.6 billion in value if gigabit capable broadband was available to every home and business currently lacking access.
Edinburgh digital infrastructure consultancy Farrpoint has produced a new analysis which suggests that widespread gigabit connectivity could also help create or sustain more than 156,000 jobs and support over 13,000 businesses.
The biggest single benefit would be from a £4.8 billion uplift in land values, reflecting the significant impact that high quality digital infrastructure can have on property values and investment in both urban and rural communities.
The findings come as the UK continues its rollout of next-generation broadband infrastructure through initiatives such as Project Gigabit, the UK Government’s £5 billion programme designed to expand gigabit-capable connectivity into rural and hard to reach areas where commercial investment alone is unlikely to deliver coverage.
Despite this progress, gaps remain in coverage across the UK, particularly in remote regions.
Matthew Izatt Lowry, head of economics at FarrPoint, said: “Digital connectivity is now as fundamental to economic development as roads, rail or energy infrastructure. It underpins how modern businesses operate, how communities access services and how regions compete for investment.
“High capacity, reliable networks enable companies to adopt cloud services, harness data, embrace automation and reach customers far beyond their local markets. They also support flexible working, digital public services and the growth of emerging sectors such as fintech, advanced manufacturing and the creative industries.
“Improved connectivity would enable smaller firms to scale more quickly, attract new enterprises to towns and rural areas that have historically been overlooked and give existing employers the infrastructure they need to innovate and grow.”
To emphasise the importance of targeted public investment, FarrPoint has created a Digital Intervention Impact Forecaster platform which allows public bodies to model the economic outcomes of investments and identify where funding is likely to deliver the greatest return.
The platform can help decision makers assess whether investment should prioritise infrastructure measures such as fixed broadband, mobile connectivity or alternative solutions such as satellite, or inclusion projects like skills training and device support. These assessments are dependent on the specific needs of a region.
“The final stages of connectivity rollout are often the most complex and expensive,” said Matthew. “As commercially-led broadband deployment begins to slow in some areas, FarrPoint believes that targeted public intervention will become increasingly important to ensure that communities and businesses are not left behind in the UK’s digital economy.”
According to the analysis, over a 15-year period there would be a £3.19 billion boost to gross value added (GVA), through the creation of the new jobs and businesses, a £4.82 billion land values uplift, a reduction in public spending by £199 million, an increase in social wellbeing by £140 million, and a monetised reduction in carbon emissions of £254 million.
