In its first Autumn Budget, the Labour government has committed £500 million to improve broadband speed and mobile coverage across the UK, with a particular focus on rural areas.

Chancellor Rachel Reeves highlighted that the funding will bolster ongoing projects like the £5 billion Project Gigabit, targeting 99% gigabit broadband by 2030, and the £1 billion Shared Rural Network (SRN) initiative, which aims for 95% 4G mobile coverage by 2025.

The new funding supports Labour’s goal of universal gigabit and 5G availability by 2030, though questions remain about the allocation of the original Project Gigabit budget, with £1.5 billion still unallocated.

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

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

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