SMEs 'held back' by slow broadband investment

Small businesses in rural locations could be hit by a delay in Government investment in superfast broadband, it has been suggested.

Buying a small business outside of a well-connected town means that an owner is reliant on infrastructure to keep their firm going. A recent report from the CBI has suggested that the Government has put these businesses, as well as households, in a difficult position by delaying the investment in the UK's broadband network.

The Let's Get Digital report urges for the acceleration of the £300 million scheme to roll out the network as quickly as possible. It adds that waiting until the next election to deliver out the investment is a mistake as international competitors are starting to catch up with the country's thriving online industry.

Katja Hall, chief policy director at the CBI, commented: “The UK has a positive story to tell on digital but we cannot be complacent if we want to stay ahead. Politicians of all parties must set aside the carping and map out digital plans together for the next decade and beyond. Too often difficult decisions are kicked into the long grass.

“Firms and industry need to know where they stand before investing for the long-term – with digital now as fundamental to business as transport or energy networks. Digital policy is not an optional add-on, it’s central to fuelling long-term growth through inward investment, job creation and exports.”