In a significant boost for connectivity, around 65,000 homes and businesses in Scotland will gain access to fast, reliable broadband, breaking down barriers to opportunity and fostering economic growth under the UK Government's Plan for Change. This initiative is part of a £157 million contract signed with Openreach, marking the largest investment ever under Project Gigabit.
The rollout of gigabit-capable internet will particularly benefit digitally isolated communities, where outdated infrastructure has made online activities like working, banking, shopping, and studying nearly impossible. Many of these areas include remote islands off Scotland's west coast, such as the Outer Hebrides, where currently just seven percent of premises can access gigabit broadband. Other areas set to benefit include the isles of Skye, Islay, and Tiree, as well as rural parts of the Highlands, including Applecross and Durness, the most north-westerly village on the UK mainland.
Telecoms Minister Chris Bryant emphasized the importance of this initiative, stating, "Digital exclusion for people living and working in hard-to-reach areas across Scotland can be a huge obstacle to living a better and healthier life. Elderly and vulnerable people could miss out on the best treatment options in North Ayrshire, while budding entrepreneurs could be held back from their dream of running a successful business in Moray." He added that the government has pledged to include everyone in the digital revolution, ensuring that existing inequalities are not entrenched as technology advances.
The £157 million contract is part of a broader £800 million agreement with Openreach announced in August 2024, aimed at tackling digital exclusion across rural Britain. Work is already underway to connect over 227,000 premises in hard-to-reach parts of Wales and England as part of this agreement. The funding is a collaboration between the UK government, the Scottish Government, and Openreach, which will help deliver the necessary coverage.
Openreach Deputy CEO Katie Milligan noted that full fibre is the UK's most reliable broadband technology, and more than half of Scotland's homes can already order it thanks to Openreach. She stated, "We believe everyone deserves access to fast, reliable connections, so we're proud to be helping extend access to communities that would otherwise be left behind. Our new network's a catalyst for growth and jobs, with experts predicting it'll bring a £4.4 billion boost to the Scottish economy and a raft of social and environmental benefits." Milligan expressed confidence in reaching as many as 30 million UK premises by 2030, assuming the right economic conditions exist.
The new network aims to empower local businesses, enabling them to thrive and access vital services. Scottish Government Business Minister Richard Lochhead remarked on the investment's significance, stating, "This new contract brings even more investment to Scotland and we are committed to working with the UK Government and Openreach to drive efficiencies across both the R100 and Project Gigabit programmes and maximise gigabit coverage."
Additionally, this contract builds on another Project Gigabit contract awarded in February 2025, which covers up to 11,000 premises in the Borders and Midlothian. More contracts are expected to be signed later this year for regions such as Orkney and Shetland, further expanding broadband access across Scotland.
The Scottish Secretary, Ian Murray, highlighted the transformative impact of this investment, calling it a "game changer for tens of thousands of homes and businesses in the most remote areas of Scotland." He stressed that rolling out lightning-fast broadband will equip and inspire local businesses, enable families to access vital services, and build resilient communities. Murray stated, "Our Plan for Change recognises that rural communities are the backbone of our nation and economic growth must reach every corner of Scotland, ensuring that opportunity isn’t determined by postcode but by potential."
Project Gigabit specifically targets areas that are too difficult or expensive for providers to reach in their commercial builds, ensuring that communities previously left behind with older digital infrastructure can now benefit from world-class networks. This initiative lays the groundwork for economic growth, creating and supporting thousands of high-skilled jobs, and empowering various industries to innovate and increase productivity through digital technology.
Moreover, this broadband expansion is crucial for the government’s mission to break down barriers to opportunity. It ensures that people can access essential services, from government services like Universal Credit and HMRC to online courses aimed at improving job prospects and helping pensioners stay connected with loved ones through higher-quality video calls.
Yvonne Boles, Senior Site Manager of Tayside Reserves at RSPB Scotland, shared her experience with the previous internet service, noting the challenges faced due to slow and unreliable connections. "We fell between a few gaps in local network improvements, but now we have gigabit capable fibre to the RSPB Loch Leven visitor centre, which has been a game changer for us. The old internet was constantly going down or being very slow, which impacted our ability to work in the office as well as taking card payments in both the shop and the café. We wasted so much time on the phone to IT trying to fix things for us. It’s been such a relief and a benefit to have reliable, powerful internet," she said.
This ambitious broadband initiative is not just about connectivity; it represents a commitment to enhancing the quality of life for residents in Scotland’s most remote areas. By bridging the digital divide, the UK Government and its partners aim to ensure that every citizen has the opportunity to thrive in an increasingly digital world, ultimately fostering a more inclusive and prosperous society.