Broadband in the UK needs to be a universal service and treated as an essential like electricity and water, according to a new report.

Fast and reliable broadband is vital for small businesses and the new broadband minister should have direct control of the roll-out of superfast broadband to boost the economy.

The Federation of Small Businesses (FSB) has called on the government to make guaranteed broadband speeds a priority as it claims small firms are losing out because of a lack of access to high-speed networks.

FSB national chairman John Walker said: "The lack of broadband is unacceptable in the 21st Century. The UK is lagging behind and as a result small businesses, especially in rural areas, cannot develop their business online which is vital for the growth of the UK's economy."

The roll-out of superfast broadband could create up to 60,000 jobs and increase UK gross domestic product by as much as £18 billion, the FSB has claimed.

Money from the BBC licence fee could be used to fund broadband access after the coalition government highlighted this an option.

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