Rural connectivity could make over £65 billion boost to UK economy

An economic study conducted by the Centre for Economics and Business Research (Cebr) in collaboration with Virgin Media O2, showed that improved rural connectivity has the potential to enhance the UK economy by £65.1 billion.

Termed 'The Great Rural Revival', this comprehensive analysis 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 impressive 6.8 per cent, ushering in 284,000 new jobs.

Over the last decade, rural regions across the United Kingdom have witnessed an incremental rise in internet connectivity. This newfound lifeline has breathed fresh life into once-secluded pockets of the nation, offering novel prospects for growth and development. However, a formidable digital divide stubbornly 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 crux of the 'Great Rural Revival' report unveils a captivating narrative, spotlighting 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 scenic 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.

Beneath the surface, this geographical exploration spotlights a profound synergy between bolstered rural connectivity and the UK government's ambitious "levelling up" mission. The pursuit of more equitable opportunities throughout the nation finds a steadfast ally in the form of enhanced rural connections.

Moreover, the 'Great Rural Revival' report unearths a cornucopia of transformative possibilities that emerge hand in hand with enhanced connectivity. The dawn of revolutionary technologies, such as drone-assisted farming and intelligent livestock monitoring, beckons a new era for rural economies and livelihoods.

The hospitality industry, too, is poised for a digital makeover with the advent of wearable technology and automated booking applications. Meanwhile, nearly a quarter of rural business leaders polled for the report expressed a keen desire to embrace technology-driven solutions, including cashless payments, video conferencing and online reservations, given improved connectivity.

Jeanie York, the visionary Chief Technology Officer of Virgin Media O2, hailed 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.

Furthermore, the 'Great Rural Revival' 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. The pandemic's tumultuous tide ushered in a shift, with idyllic countryside retreats emerging as the darling of Airbnb bookings, catapulting their share from 23 per cent in 2019 to a staggering majority in 2021.

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.

The Great Rural Revival demonstrates that as digital connectivity and innovative apps redefine the contours of travel, spending and lifestyle choices, the rural tourism sector may gain immensely from embracing these new trends. The symbiotic relationship between technological innovation and the ancient charm of rural space heralds a new chapter for the tourism industry.

Robert Beauchamp, managing economist at Cebr, said: "Our findings highlight how improved digital connectivity could unleash growth in the rural economy."

With resounding conviction, Beauchamp noted that these transformative effects would radiate predominantly beyond the bustling streets of London. The North West, South West, Yorkshire and the Humber are primed to serve as beacons of change, reflecting the report's predictions.

Beauchamp eloquently summarised the report's essence, stating the profound truth that improved digital connectivity possesses the formidable power to unleash the full spectrum of growth in the rural economy.

The divide between potential and actualisation looms large, with rural communities poised to continue trailing behind their urban counterparts in the absence of this vital lifeline.