Government announces £440m broadband funding for UK's 'hardest-to-reach' homes

The Government has announced £440million superfast broadband funding for the UK's 'hardest-to-reach' homes and businesses under a broadband rollout scheme.

Funding has been unlocked to give more properties in rural areas of the UK the quick and reliable internet connections which are a vital part of modern life.

The cash boost is a combination of efficiency savings and a clawback mechanism which re-invests money when people take up superfast connections installed by the Broadband Delivery UK project.

New figures show around 1.5 million homes and businesses have now taken advantage and signed up for superfast connections in areas where Government has subsidised rollout.

As a result, BT will be releasing £292 million for extra connections – with £133 million already allocated to be spent in regions around the UK.

Careful contract management by the Government, local authorities and BT has also saved more than £150 million across 44 projects as the first phase of rollout draws to a close.

It means a total of £442 million can now be reinvested in taking superfast speeds to some of the most remote parts of the country.

'Crucial in cementing the digital divide'

CLA Rural Business Adviser Dr Charles Trotman said it is 'entirely right' that BT Group, which is providing the additional cash, recycles money from the windfalls received from the programme back into the scheme.

“BT Group is both the main recipient of public money, provided to BT Openreach to fund the roll out of infrastructure, and is also the main commercial provider of internet services to homes and businesses once they are connected. So it is vital the Group is tightly regulated.

Mr Trotman added: “The next two years are crucial in cementing the end of the digital divide that continues to hold back the rural economy from fulfilling its potential. The legal imposition of a universal service obligation, as provided for in the Digital Economy Bill, can ensure that every home and business owner will no longer have to accept substandard connections.

“It is also essential for government and industry to embrace the range of technologies that could be used to deliver the best possible connections to tackle the final 5% of the most remote and difficult to connect homes. Providing communities with a voice and stake in how they are connected will be crucial to ensuring the right investments are made in this area.”