UK government pledges £500m to expand broadband and mobile coverage in rural areas

In its first autumn budget, the Labor government allocated £500 million to improve broadband speed and mobile phone coverage across the UK, with a particular focus on rural areas.

Councilor Rachel Reeves highlighted that the funding will boost ongoing projects such as the £5bn Gigabit Project, which targets 99% gigabit broadband by 2030, and the £1bn Shared Rural Network (SRN) initiative, which aims for 95% mobile coverage. 4G by 2025. .

The new funding supports Labour’s goal of global gigabit and 5G by 2030, although questions remain over the original Gigabit project budget allocation, with £1.5bn not allocated.

Sachin Agrawal, Zoho’s UK Managing Director, praised the funding, stressing the importance of connectivity for rural businesses in driving local economic growth. He added that improving broadband and mobile networks could encourage companies to operate outside congested urban centres, reducing costs and supporting flexible business models that benefit employees and communities.

With reliable internet infrastructure essential for seamless remote working, the £500 million investment is expected to improve digital access, supporting a more distributed and resilient economy across the UK. The Budget’s focus on connectivity reflects the Government’s commitment to bridging the digital divide and enabling rural areas to thrive in an increasingly digital economy.