THE majority of homes and businesses across the UK will have full-fibre internet connections by 2025, under a target set by Philip Hammond.

The Chancellor told business leaders that he wanted 15 million premises to benefit from the high-speed connections as part of the effort to boost the post-Brexit economy.

He promised to use "all the tools at the Government's disposal" to ensure all parts of the country could benefit from full-fibre connections, which can be 40 times quicker than existing "superfast" internet.

At the Confederation of British Industry annual dinner, Mr Hammond set out a target for the "full-fibre to the premises" network to be expanded across the country by 2033.

He explained: "Full-fibre networks are faster, more reliable, and more affordable to operate than their copper predecessors.

"Over a million premises already have direct access to them...but if we are to achieve our ambition of a truly high-speed economy, and keep up with our competitors, then we need a step change in our approach."

He acknowledged that "Government diktat" would not meet the 15m target.

"We will do it by creating the conditions for the market to deliver...and we will use all the tools at the Government's disposal to ensure all parts of the country can benefit from fibre technology.

"And we'll go further, by committing to finishing the job and delivering a nationwide full-fibre to the premises network by 2033."

He also urged firms to help ministers tackle the UK's sluggish productivity performance.

"Government can't solve our nation's productivity challenge alone, because it is not only about infrastructure investment. It is also about management skills at the level of the firm.

"We need business leaders in this room and around the country to embrace innovation and technological change and to invest in driving productivity growth," added the Chancellor.

Carolyn Fairbairn, the CBI’s Director-General, said: "The UK's digital infrastructure is the backbone of our future success, so businesses will warmly welcome the Chancellor's commitment to widen full-fibre broadband access, which will ensure the UK remains competitive as the pace of technologies change."