Report: Superfast broadband to make UK economy £20bn in 15 years

Firms to benefit from cloud computing, efficiency and flexibility

Superfast broadband rollout across London could contribute up to £19.8bn to the UK economy over the next 15 years, according to economic research firm Regeneris Consulting.

Some £7.3bn of the £19.8bn will come from improved business performance, while £11bn is from new business creation and nearly £1bn from the benefits of an increase in home-working.

Regeneris claimed superfast broadband will allow businesses to operate more efficiently and allow them to develop new products and services, which in turn will benefit the UK economy.

The report said that new businesses will emerge due to a reduction in barriers to entry in certain sectors with the introduction of superfast broadband.

It said that cloud computing is the most significant way in which this can occur as it reduces upfront capital and ongoing support costs of setting up a business and allows for a steady, flexible growth. Regeneris said 6,600 new firms will be created through cloud computing.

Regeneris Consulting expected about 26,200 jobs to be created through business creation and improved business performance. It added that 73,000 teleworkers will be supported through a widespread availability of superfast broadband in the 15-year period.

The firm said that every £1 invested by a business in superfast broadband will create £10 in additional gross value added (GVA) for the UK economy.