An economic study conducted by the Centre for Economics and Business Research (Cebr) has shown that improved rural connectivity has the potential to enhance the UK economy by £65.1 billion.
The Great Rural Revival report, in collaboration with Virgin Media O2, digs into four pivotal sectors – tourism, agriculture, manufacturing and small enterprises – to unearth a promising path towards rural prosperity.
The findings revealed the alluring prospect of elevating rural employment by an 6.8 per cent, ushering in 284,000 new jobs.
The report said that over the last decade, rural regions across the United Kingdom have witnessed an incremental rise in internet connectivity. This lifeline has breathed fresh life into once-secluded pockets of the nation, offering novel prospects for growth and development.
A digital divide persists between rural and urban communities, hampering the realisation of their true potential. This disparity leaves many areas struggling with the unrelenting challenge of unreliable internet access.
The report spotlights the East of England as the primary beneficiary of enhanced digital connectivity, yielding a £12 billion increase for the local economy and 42,000 new employment.
Other regions destined for transformative growth include the South West, which anticipates a £7 billion windfall and a commendable 39,000 new jobs. Meanwhile, Wales stands to witness an economic infusion of £5 billion, accompanied by the generation of 25,000 fresh employment opportunities.
Virgin Media O2 Chief Technology Officer Jeanie York said the past decade’s expansion of fixed and mobile networks as a precursor to the monumental potential now unveiled. The promise of a £65 billion surge in rural GDP paints a vivid picture of the transformation that connectivity can unfurl.
York emphasised the pivotal role of close collaboration between industry partners, the UK government, planning authorities and landowners in realising the crucial network upgrades that will bridge the yawning gap in rural-urban connectivity. This, in turn, will usher in swifter, more reliable coverage, opening the floodgates to new avenues of employment and growth.
The report revealed that the increased connectivity may result in a 9.9 per cent increase in turnover, equal to an extra £842 million per year in the rural tourism sector.
Additionally, the shortfall in international travel during the preceding year stoked a 20 to 30 per cent upsurge in demand for British hotels, bed and breakfasts and vacation parks.
Cebr managing economist Robert Beauchamp said: “Our findings highlight how improved digital connectivity could unleash growth in the rural economy.”
Beauchamp noted that these transformative effects would radiate predominantly beyond London. The North West, South West, Yorkshire and the Humber are primed to serve as beacons of change, reflecting the report’s predictions.
