Thousands of farms and rural households are set to receive significant internet speed improvements through an £800 million fund introduced by the new government.

This funding aims to upgrade broadband infrastructure across rural areas in Scotland, England and Wales.

According to the government, the initiative will deliver ‘lightning-fast’ gigabit-capable broadband to approximately 312,000 rural homes and businesses.

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For the first time, Wales, which has the lowest percentage of gigabit coverage, will benefit from this program.

This development will allow farmers in remote areas to access some of the fastest internet connections available on the market.

A survey conducted by the NFU found that less than half of farmers reported having broadband speeds they considered sufficient for their operations.

However, this landmark agreement between the government and telecom provider Openreach marks one of the most significant milestones in the Project Gigabit rollout.

This initiative targets areas that are too costly for providers to reach in their commercial expansion and would otherwise be left with inadequate digital infrastructure.

This news follows the new Labour government’s pledge to intensify efforts to achieve full gigabit coverage by 2030.

Peter Kyle, Secretary of State for Technology, acknowledged that the UK's broadband rollout over the past decade has ‘clearly not happened fast enough’ and has neglected too many regions, especially in Scotland and Wales.

He stated: "Robust digital infrastructure is essential for growth, productivity and competitiveness and this shortfall not only poses risks to our economic stability, but also entrenches existing inequalities across the country.

“We are fixing this by delivering for hundreds of thousands of homes and businesses up and down the country, focusing on the areas that were not prioritised by the previous government, such as Wales.

"Today marks a significant milestone in delivering on our promise to redouble our efforts to achieve full gigabit coverage by 2030 and lay the foundations for a more inclusive, dynamic and prosperous future for all citizens."

Contracts worth £288m have already been signed with Openreach under this agreement, aiming to connect approximately 96,600 homes and businesses in England and Wales.

Benefitting areas include Lancashire, North Wiltshire, South Gloucestershire, West and Mid-Surrey, Staffordshire, West Berkshire and Hertfordshire, West and North Devon, as well as North West, Mid, and South East Wales.

Discussions are ongoing with Openreach to finalize additional contracts that will benefit around 215,800 more premises, with further announcements expected in the coming months.

Areas anticipated to benefit include Central and North Scotland, North and South West Wales, Mid and South Devon, East and South Shropshire, North Herefordshire, North Somerset, Essex, North East England, and Worcestershire.