How the New UK Budget Will Affect Business Broadband Prices in 2026 Quick answer
The 2025 UK Budget is unlikely to lead to significant increases in broadband prices, but it will indirectly affect business broadband costs. Permanent Full Expensing, NIC cuts, and targeted digital investment funding help reduce providers’ operational costs and encourage businesses to upgrade faster. Meanwhile, business rates relief for retail and office-based SMEs frees up cash to invest in faster broadband or leased lines (meaning many businesses could secure better deals in 2026, not worse!)
The good news?
Here’s our clear breakdown of how the 2025 Budget impacts business broadband and leased line pricing.
If you would like to learn more about business broadband or pricing, you can do so here .
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Authored by: Ally Cox (Business Technology & B2B Services Specialist 10+ Years’ Experience)
Reviewed by: James Ward (Telecoms Specialist, 12+ Years Experience)
Last Updated: January 2026
Contents:
Full Expensing Is Now Permanent
NIC Cuts Help Telecom Providers
Business Rates Relief Frees Up Capital
Digital & AI Funding
Broadband Providers Are Still Under Pressure From Infrastructure Costs
Average UK Business Broadband Prices in 2026
1. Full Expensing Is Now Permanent (This Reduces Broadband Upgrade Costs) One of the Budget’s biggest announcements: Full Expensing is now permanent, meaning businesses can deduct:
100% of costs on new IT hardware, fibre equipment, routers, switches
50% of costs on long-life network assets
This matters because:
SMEs upgrading to FTTP, leased lines, or new routers can now offset the cost
IT partners and ISPs can expand infrastructure at lower tax cost
Faster rollout of gigabit connections reduces installation lead times
Impact on Broadband Prices
Look, we know that full Expensing doesn’t automatically reduce monthly broadband prices, but it lowers:
Installation costs
Hardware upgrade costs (routers, firewalls, network switches)
Internal IT labour required for digital transformation
For businesses upgrading to leased lines, this is a substantial financial win!!
The Budget confirmed:
Employee NIC cut from 10% → 8%
Self-employed NIC cut from 8% → 6%
This impacts broadband costs in two ways:
a) Telecom providers see reduced staffing costs
Network engineers, customer service teams and installation staff become cheaper to employ, easing OPEX pressure.
b) SMEs have more disposable cash
For many UK businesses, NIC savings (especially for growing teams) create a nice big space in the budget for:
Faster FTTP connections
Backup broadband or 4G/5G failover
Upgrading from 80Mbps FTTC to 1Gb leased lines
3. Business Rates Relief Frees Up Capital for Connectivity Retail, hospitality and leisure sectors retain 75% business rates relief (up to £110,000) which indirectly influences broadband adoption by freeing up spend.
Think
Restaurants upgrading to managed Wi-Fi
Retailers expanding EPOS & digital tills
Gyms adding fast guest Wi-Fi
Offices adopting cloud VoIP
Courier/logistics depots upgrading to leased lines
Reduced rates = more bandwidth investment.
4. Digital & AI Funding Boosts Demand for Faster Broadband The Budget allocates £1.4 billion to:
AI Innovation Centres
Cybersecurity programmes
UK manufacturing digitisation
SME digital adoption incentives
Which drives demand for:
Faster uploads
Lower latency
More reliable connections
Which then usually means:
➡ More UK businesses shifting to leased lines
➡ Higher demand for FTTP and gigabit broadband
➡ Increased competition among providers
Higher competition = lower prices!
5. Broadband Providers Are Still Under Pressure From Infrastructure Costs Ofcom and telecom data show:
FTTP coverage passed 92% of UK buildings
Leased line pricing down 14–20% compared to 2021
Openreach wholesale costs are stable
BUT providers still face:
Rising fibre rollout costs
High interest rates on infrastructure financing
Wage inflation for skilled engineers
This means broadband prices will likely:
Stay stable (rather than fall dramatically!)
Average UK Business Broadband Prices in 2026
Broadband Type Typical monthly cost 2024 Price Change
FTTP 100–300 Mbps
£28–£45
£30–£49
↓ Slight decrease
FTTP 500 Mbps
£40–£65
£45–£70
↓ 5–10%
FTTP 1Gb
£55–£95
£60–£110
↓ 10–20%
4G/5G Backup Broadband
£20–£35
£20–£35
No major change
Leased Lines 100Mb
£139–£199
£150–£220
↓ Small decrease
Leased Lines 1Gb
£189–£349
£200–£400
↓ Noticeable decrease
(Based on Dec 2025 UK supplier rates and CYBC research.)
So, Will Broadband Prices Rise in 2026? Unlikely.
Based on 2026 data:
Stable market conditions
Lower tax costs for providers
Higher demand pushing competition
Strong wholesale pricing
Government investment in digital rollout
Broadband prices will remain stable or decrease slightly.
Key Takeaways About the New UK Budget
Broadband prices in 2026 will stay stable or fall slightly.
Full Expensing helps reduce installation & hardware upgrade costs.
NIC reductions free up cash for connectivity investment.
Business rates relief gives SMEs more budget for digital tools.
Leased line prices continue their downward trend.
Government AI/digital funding increases demand for faster broadband.
FAQs About the New UK Budget & Business Broadband Prices 1. Will the UK Budget increase broadband prices in 2026?
No. Nothing in the Budget raises broadband costs directly, and increased competition should keep prices stable.
2. Does Full Expensing apply to broadband upgrades?
Yes, routers, switches, fibre equipment and network hardware qualify for 100% first-year tax deductions.
3. Will leased lines get cheaper in 2026?
Yes, competition and lower infrastructure costs are pushing prices down 10–20% compared to previous years.
4. How does the Budget help SMEs invest in better connectivity?
NIC cuts, business rates relief and new digital funding free up cash for upgrades.
5. Are FTTP prices expected to fall?
Slightly… especially for 500Mb and 1Gb packages due to expanded UK coverage.
6. Will telecom providers raise prices due to inflation?
Some may increase CPI-linked contract rises, but base broadband pricing should remain stable.
7. Should I upgrade to FTTP or a leased line in 2026?
If your business uses cloud apps, VoIP, CRM systems, or remote teams – yes
Video About the New UK Budget
Hi, I’m Ally Cox , a senior copywriter and blogger at CompareYourBusinessCosts.co.uk, the UK’s trusted platform for comparing business services.over a decade of experience in the B2B sector, I specialise in simplifying complex topics like leased lines, VoIP, business energy, HR and payroll solutions, accounting software, and EPOS systems .HR, copywriting, and business operations- from clocking-in systems to card machines and office technology .informed, confident decisions when choosing products and services that improve efficiency and save money.
