Gigabit broadband in the UK: Government targets, policy, and funding

The government’s target is for next-generation, gigabit broadband to be available to 85% of the UK by 2025 and nationwide by 2030. This paper discusses the background to these targets and recent government policies and funding to support the rollout of gigabit broadband.

The UK Government has primary responsibility for broadband policy and coverage targets because telecommunications is a reserved power. However, the delivery of broadband infrastructure projects often involves local authorities or devolved responsibilities, such as building regulations, planning and business rates.

What is gigabit-capable broadband?

Gigabit-capable broadband means a broadband connection capable of download speeds of at least 1 gigabit-per-second (1 Gbps or 1,000 megabits per second, Mbps). A 1 Gbps download speed would allow a high-definition film to be downloaded in under 1 minute.

Gigabit-capable broadband can be delivered by a range of technologies, including full fibre, high-speed cable broadband, and potentially wireless technologies.

New gigabit-capable networks are primarily being built using full fibre technology. The cable broadband network is owned by Virgin Media O2, which has finished upgrading its network to gigabit speeds. Wireless networks may be the most economically viable option in very hard to reach areas.

Where is gigabit-broadband available currently?

As of January 2024, 78.5% of UK premises had a gigabit-capable broadband connection available according to Ofcom, the telecoms regulator.

Separately, broadband data website Thinkbroadband.com publishes regular coverage updates. It estimated that 85.5% of premises had gigabit-capable broadband available in November 2024. Thinkbroadband uses a different methodology to Ofcom and its coverage figures tend to be slightly higher.

The Library’s broadband data dashboard, which is based on Ofcom’s data, allows users to explore where gigabit broadband is available by constituency.

Government targets

The Conservative Party’s 2019 manifesto commitment was to deliver nationwide gigabit-broadband by 2025. That target was revised in November 2020 to a minimum of 85% of premises by 2025. The Levelling Up White Paper published in February 2022 set a new target: for gigabit-broadband to be available nationwide by 2030. Nationwide coverage means “at least 99%” of premises.

The Labour Government has said that it is committed to achieving these targets.

The government said in April 2024 it is “on track” to meet the 2025 target. Thinkbroadband’s unofficial data indicates that the target has been met as of November 2024, although as noted above thinkbroadband’s coverage figures tend to be a few percentage points higher than Ofcom’s.

The National Infrastructure Commission, in its annual infrastructure review for 2024, said that it expects the 2030 target to be met if the private sector continues to deliver and the government maintains its funding commitments. Ofcom has estimated that if operators’ stated network deployment plans (commercial and subsidised) are achieved, 97% of UK premises could have gigabit-capable broadband by May 2027. That includes 99% of urban areas and 88% of rural areas.

How is gigabit broadband being rolled out?

The government’s policy is that gigabit-broadband infrastructure will be mostly built using private investment. The Conservative Government and Ofcom introduced policy reforms with the aim of enabling the private sector to reach around 80% of UK premises by 2025 through commercial investment alone.

The remaining 20% are not expected to be commercially viable in the target timeframe (that is, by 2030) and will require public subsidies.

The Labour Government has broadly continued this approach of supporting the private sector through policy and targeting subsidies at areas that would otherwise be left out.

Policy reforms to meet the target

Policy reforms under the Conservative Government focused on making it easier for the telecoms industry to build infrastructure and to promote competition among companies building broadband networks.

Reforms include making it easier to access land to install infrastructure and to require that new homes are built with gigabit-broadband installed. Ofcom has sought to encourage new entrants to compete with Openreach (the company that operates BT’s broadband network) while also allowing Openreach to make a return on its own investment in full fibre. Industry stakeholders have called for further tax relief on new broadband investments and for the government to address skilled labour shortages.

Public funding for gigabit broadband

The government has promised £5 billion to subsidise the roll-out of gigabit-broadband to the ‘hardest to reach’ premises in the country that will not be reached by private investment (20% of the UK). This is around 5 million premises, mostly in rural areas.

The funding programme is called Project Gigabit. It is delivered by Building Digital UK (BDUK), an executive agency within the Department for Science, Innovation and Technology (DSIT).

Project Gigabit has three main parts:

• Contracts awarded to a network operator to subsidise the large-scale deployment of gigabit-capable broadband in defined area. Broadband suppliers bid for contracts to build in each area.
• A voucher scheme for residents and businesses in eligible areas to subsidise the cost of a new gigabit-capable connection.
• Funding to connect public sector buildings such as schools (called ‘GigaHubs’).

BDUK publishes quarterly progress updates that provide indicative timetables for procurements across the UK.

The devolved administrations also have their own broadband subsidy projects ongoing that are building gigabit-capable connections. These are the R100 programme in Scotland, Superfast Cymru in Wales and Project Stratum in Northern Ireland.