The majority of all homes and businesses in Britain will be linked to the fastest kind of internet connection that exists within seven years, the chancellor is set to announce.

Philip Hammond will tell business leaders on Tuesday that cutting-edge full fibre, 40 times quicker than superfast internet, will be rolled out in a bid to prepare the country for Brexit.

Mr Hammond was due to speak at the CBI in the first of a series of speeches in which he is expected to focus Treasury policy on the post-Brexit world.

He was to say: “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.

“So this evening I will set a target to see full-fibre connections being available to 15 million premises, that’s the majority of homes and businesses, by 2025. This is ambitious and it will require industry to connect more than two million additional premises a year for the next seven years.”

Mr Hammond was to say that the government would achieve the goal by “creating the conditions for the market to deliver”, rather than by “diktat”.

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He said the UK would have a nationwide full-fibre network to all premises network by 2033.

In addition, the chancellor will launch a review of productivity, and funding to boost the UK’s business performance and help deliver higher wages for people across the country.

He will invest £20m in the ‘made smarter’ scheme in the North West, led by Siemen’s chief executive Juergen Maier, to bring the latest digital technology to manufacturing supply chains.