British Chancellor Rishi Sunak has announced a £5 billion commitment to deliver gigabit-capable broadband across the UK, a central measure in a Budget aimed at strengthening the economy amid global uncertainty.
This Budget is Sunak’s first since his appointment earlier this year and the first to follow the UK’s departure from the EU. It attracted heightened attention due to the emerging coronavirus outbreak and its effects on the world economy.
Andrew Duncan, Partner and UK Head of Infosys Consulting, said:
“It’s a relief to see the Chancellor investing in innovation—especially at a time when coronavirus is placing heavy demands on public finances. The substantial investment in UK R&D, combined with a promise of £5 billion for next-generation broadband and expanded 4G coverage, demonstrates that the government is committed to turning Britain into a digital leader.”
“Many recent initiatives—like an AI and automation-enabled NHS or significant funding for AI and digital skills—were once dismissed as optimistic. This funding makes those goals feel far more achievable.”
Delivering gigabit broadband nationwide was a key pledge made by Prime Minister Boris Johnson during his victory speech after last year’s election. Chancellor Sunak’s funding pledge is intended to support that ambition, helping to extend high-capacity networks across the country by 2025.
For an advanced economy, the UK’s broadband performance has long lagged behind peers. In a 2019 broadband speed ranking, the UK was placed 35th globally.
Holly Niblett, Head of Digital at comparethemarket.com, commented:
“The Chancellor’s commitment to improve broadband connectivity in rural areas will be welcome news for households that have suffered from poor speeds for years.
Ofcom data shows roughly 155,000 UK properties still lack access to a decent broadband connection, and our research indicates nearly two-thirds (63%) of homes experience broadband outages or significantly reduced speeds at least once a month.
Many outages occur in rural areas, where consumers often have only one or two providers to choose from. This investment should expand connectivity, increase consumer choice, and spur competition across the market.”
The Budget’s broadband funding aims to close the gap with other leading countries and ensure that the UK’s digital infrastructure supports future growth and competitiveness.
Greg Mesch, CEO of CityFibre, added:
“Britain is a service-driven economy that depends on the internet, and the internet performs best on full-fibre networks. Full-fibre infrastructure enables more advanced 5G services, smart-city applications, and provides the platform the country needs to thrive.”
In addition to the broadband commitment, a “Shared Rural Network” initiative was announced earlier in the week. Under this plan, operators EE, Three, O2, and Vodafone will collaborate to improve mobile coverage in underserved areas—an initiative expected to particularly benefit communities in Scotland, Wales, and Northern Ireland.
CompareTheMarket has published a full Budget guide summarizing these announcements and their implications.
Interested in hearing industry leaders discuss these topics and share practical use cases? Attend events in the co-located series—IoT Tech Expo, Blockchain Expo, AI & Big Data Expo, Cyber Security & Cloud Expo, and 5G Expo—to explore the future of enterprise technology at upcoming shows in Silicon Valley, London, and Amsterdam.