FarrPoint Claims Universal UK Gigabit Broadband May Boost Economy by £8.6bn

Consultancy firm FarrPoint has today published new independent analysis, which claims that the United Kingdom’s economy could gain a boost of more than £8.6 billion if gigabit-capable broadband connectivity was universally available to every single home and business – helping to create or sustain more than 156,000 jobs and support over 13,000 businesses.

At present the Government’s £5bn Project Gigabit programme already aims to help extend gigabit broadband (1000Mbps+) networks to “nationwide” coverage (c.99% of UK premises) by 2032, focusing mostly on the final 10-20% in hard-to-reach areas (commercial investment has already done the bulk of the country). Some 90% of premises can already access such a network (here) and Ofcom are forecasting it to reach up to 97% by January 2028 (here).

Suffice to say that economists at FarrPoint estimate that the largest single benefit from pushing gigabit coverage to universal levels would come 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“.

FarrPoint’s analysis also indicates that the economic benefits of closing the connectivity gap would extend beyond business productivity. Over a 15-year period, improved connectivity could also contribute to reductions in public sector costs, lower carbon emissions through reduced travel and measurable improvements in social wellbeing.

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.”

However, it’s always worth noting that trying to accurately gauge the economic impact of deploying faster broadband is notoriously difficult, not least since most premises won’t be starting from a point of zero connectivity. Likewise, we’re all very different in our consumption requirements, and not all homes and businesses get the same benefit from having access to significantly faster broadband speeds than are currently available.

Naturally there’s another reason for this new study since, in order to emphasise the importance of targeted public investment, FarrPoint has also 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.