How the UK Can Unlock £8.6bn Through Targeted Investment in Connectivity
The UK economy could be missing out on more than £8.6 billion in economic value due to gaps in gigabit-capable broadband coverage, according to new analysis from FarrPoint. While significant progress has been made in recent years, the findings highlight the scale of the opportunity still available through targeted investment in digital infrastructure.
Connectivity is now a core enabler of economic activity. Reliable, high-capacity networks support how businesses operate, how public services are delivered and how regions attract investment. Where coverage remains limited, this can constrain productivity, business growth and wider economic development.
156,000 new jobs
The analysis indicates that extending gigabit connectivity to all currently underserved premises could support or create more than 156,000 jobs and benefit over 13,000 businesses. These impacts reflect the role that digital infrastructure plays in enabling organisations to adopt cloud-based services, improve efficiency and access wider markets.
4.8bn Uplift in Land Values
One of the most significant estimated benefits is a £4.8 billion uplift in land values. This reflects growing evidence that digital connectivity is an increasingly important factor in determining the attractiveness of locations for both residential and commercial investment. Areas with strong digital infrastructure are better positioned to support new development, attract businesses and retain skilled workers.
The UK Government’s Project Gigabit programme has already made important progress in extending coverage, particularly in rural and hard-to-reach areas. However, gaps remain, and these are often the most complex and costly to address. As commercial deployment slows in less viable areas, the role of targeted public investment becomes more important.
Ensuring that funding is directed effectively requires a clear understanding of local needs and potential outcomes. Different areas may require different solutions, whether that is fixed broadband, mobile connectivity or alternative technologies such as satellite. In addition, non-infrastructure interventions, such as improving digital skills and access to devices, can play a complementary role in maximising the benefits of connectivity.
Forecasting ROI before Investing in Connectivity
To support this, FarrPoint has developed a Digital Intervention Impact Forecaster. The platform enables public sector organisations to model the potential economic outcomes of different types of investment and identify where funding is likely to deliver the greatest return. This allows for more informed decision-making, particularly in the later stages of rollout where interventions need to be more targeted.
High-quality connectivity is particularly important for sectors that rely on large volumes of data or real-time collaboration, including advanced manufacturing, software development, engineering and healthcare. In these sectors, reliable, low-latency connections are essential to maintaining efficiency and competitiveness.
The potential benefits of improved connectivity also extend beyond direct economic impacts. Over time, better digital infrastructure can contribute to reduced travel demand, supporting lower carbon emissions, and enable more efficient delivery of public services. There is also evidence that improved access to digital services can have a positive impact on social outcomes, particularly in more remote or underserved communities.
As the UK moves into the next phase of its connectivity rollout, the focus is likely to shift from broad coverage expansion to more targeted interventions. Addressing the remaining gaps will require a combination of investment, planning and data-driven decision-making to ensure that communities and businesses are able to fully participate in the digital economy.
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Meet the team
Tales Gaspar
Programme Manager, UK SPF and Satellite, techUK
Tales has a background in law and economics, with previous experience in the regulation of new technologies and infrastructure.
In the UK and Europe, he offered consultancy on intellectual property rights of cellular and IoT technologies and on the regulatory procedures at the ITU as a Global Fellow at the European Space Policy Institute (ESPI).
Tales has an LL.M in Law and Business by the Getulio Vargas Foundation (FGV) and an MSc in Regulation at the London School of Economics, with a specialization in Government and Law.
- Email:
- [email protected]
- Phone:
- +44 (0) 0207 331 2000
- Website:
- www.techUK.org
- LinkedIn:
- www.linkedin.com/in/talesngaspar
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Sophie Greaves
Associate Director, Digital Infrastructure, techUK
Sophie Greaves is Associate Director for Digital Infrastructure at techUK, overseeing the Telecoms Programme, the Data Centres Programme, and the UK Spectrum Policy Forum.
Sophie leads our work across telecoms networks, security and resilience, supply chain diversification, advanced communications technologies, spectrum policy, and data centres - bringing these areas together into a dedicated Digital Infrastructure unit. She was previously Head of Telecoms and Spectrum Policy.
Prior to joining techUK, Sophie completed a masters in Film Studies at University College London; her dissertation examined US telecoms policy relating to net neutrality and content distribution.
- Email:
- [email protected]
- Phone:
- 0207 331 2038
- LinkedIn:
- https://www.linkedin.com/in/sophiegreaves/,https://www.linkedin.com/in/sophiegreaves/
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Josh Turpin
Programme Manager, Telecoms and Net Zero, techUK
Josh joined techUK as a Programme Manager for Telecoms and Net Zero in August 2024.
In this role, working jointly across the techUK Telecoms and Climate Programmes, Josh is responsible for leading on telecoms infrastructure deployment and uptake and supporting innovation opportunities, as well as looking at how the tech sector can be further utilised in the UK’s decarbonisation efforts.
Prior to joining techUK, Josh’s background was in public affairs and communications, working for organisations across a diverse portfolio of sectors including defence, telecoms and infrastructure; aiding clients through stakeholder engagement, crisis communications, media outreach as well as secretariat duties.
Outside of work, Josh has a keen interest in music, painting and sailing.
- Email:
- [email protected]
- Phone:
- 020 7331 2038
- LinkedIn:
- https://www.linkedin.com/in/josh-turpin/
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Authors
Matthew Izatt-Lowry
Head of Economics, FarrPoint
