Around 8 in ten councils believe financial constraints are the greatest barrier to digital inclusion, research finds

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February 2026 - Local Government

A recent survey has found that almost four-fifths (77%) of English councils cite local authority financial challenges as the biggest obstacle to improving digital inclusion and skills for their residents.  Additionally, around two-thirds (65%) perceive staff capacity and a lack of funding opportunities as significant barriers to bridging the digital divide.

The Local Government Association (LGA) conducted an online survey of all 317 local authorities in England from 10 September to 10 October 2025, receiving 83 responses. Primarily, the survey aimed to understand how councils support digitally excluded residents and explore councils' approaches, strategies and governance structures for digital inclusion. The findings show that the majority (82%) of the local authorities surveyed proactively try to support digitally excluded residents through a mix of practical services, skills support, and access initiatives.

When asked about the digital inclusion initiatives provided to residents, the most common types of support offered by councils included signposting (70%), public Wi-Fi access (70%) and digital skills training (56%). Other initiatives mentioned included data gifting and refurbished phone distribution schemes. However, around two-thirds (65%) of councils were keen to highlight that the delivery and efficacy of these initiatives were affected by the lack of other funding opportunities, while half (48%) questioned the financial sustainability of these initiatives as a result of the current financial challenges facing local authorities.

Additionally, the report also explores why some residents continue to be digitally excluded despite council efforts. It emphasises issues related to affordability and socio-economic factors – including deprivation and financial instability - where some residents cannot afford devices, data, or home broadband, even if connectivity infrastructure is available. It also recognises that some residents lack the digital skills, confidence, or support needed to use digital tools or online services. Furthermore, it shows that although many councils are working hard to support digitally excluded residents, widespread challenges continue to limit progress.



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