The government needs to improve access to high speed broadband for UK small businesses, 45,000 of which still use outdated dial-up connections.

That’s the message from the Federation of Small Businesses (FSB), which says ministers should emphasise faster internet for businesses in its forthcoming digital infrastructure strategy.

Research by the FSB shows that 94 per cent of its members think fast internet is “critical” to business success. Yet current policy priorities favour households, while some businesses struggle to downloan large files or send invoices electronically.

The report reads: “The current government targets of 24Mbps for 95 per cent of the population and 2Mbps for the remaining five per cent will not meet the future demands of UK businesses.”

It has called on the government to:

- Commit to delivering minimum broadband speeds of 10 Mbps for all businesses by 2019

- Ensure broadband products better reflect business needs

- Prioritise fibre-optic broadband for business communities

- Structural changes to broadband market by Ofcom

“Evidence from our members shows this clearly is a problem affecting all corners of the UK, rural areas and cities alike,” says John Allen, national chairman of the Federation of Small Businesses (FSB).

“While progress has been made with the residential market, businesses have not enjoyed the same benefits, which is holding back their growth.”