Poor mobile phone coverage will be a thing of the past as the Government champions a £1 billion deal with the mobile phone industry to banish rural not-spots.

The move will bring 4G coverage to 95 per cent of the UK by 2025 and be a huge boost for consumers. More people in rural areas will benefit from the speed and efficiency of services on the go - from booking travel, shopping online or speaking to friends and family.

Digital Secretary Nicky Morgan is supportive of a £530 million proposal from the UK’s mobile network operators for a Shared Rural Network with the potential for it to be matched by £500 million investment from Government.

This would be a world-first deal with EE, O2, Three and Vodafone investing in a network of new and existing phone masts they would all share. Consumers will be able to rely on their own provider’s network to use their mobile phones wherever they are.

It follows Government proposals for an overhaul of planning rules and is part of the Prime Minister’s plan to level up the country with world-class digital infrastructure across the country to make sure homes and businesses are better connected.

Better 4G connectivity will make flexible working easier, boost regional economic growth and close the digital divide that exists across the country. The benefits will be felt across all four nations of the UK with the greatest coverage improvements in Scotland, Wales and Northern Ireland.

Digital Secretary Nicky Morgan said :"We are determined to make sure no part of the country is left behind when it comes to mobile connectivity. We are closing in on a deal with the mobile network operators so those living in rural areas will be able to get the fast and reliable mobile coverage they need and deserve.

"Brokering an agreement for mast sharing between networks alongside new investment in mobile infrastructure will mean people get good 4G signal no matter where they are or which provider they’re with.

"But it is not yet a done deal and I want to see industry move quickly so we can reach a final agreement early next year."

Strong competition promotes industry investment in mobile coverage in dense urban areas, but rural areas have fewer potential customers and have not seen the level of investment needed to provide good coverage.

The deal would see all four operators come together to create a new organisation to deliver the Shared Rural Network, in what would be an innovative and unique solution to the persistent problem of poor mobile coverage in the countryside. It would get the maximum use out of existing and new phone masts by allowing all four operators to host equipment on them.

CLA Deputy President Mark Bridgeman said: “We know the countryside has huge potential for job creation and new economic growth, but in order for this to happen we must ensure every community in the country is fully-connected. Today’s news is a big step towards achieving that goal.

“This announcement will be welcomed by everyone who lives or works in the countryside. We have been hugely frustrated at the lack of progress in improving mobile reception to date, but the legal coverage obligations now put on operators to improve the situation, through the delivery of a Single Rural Network, will ensure demonstrable improvements over the next few years for rural communities.“

Under the proposal, the four operators will invest £530 million to open up and share existing masts and infrastructure to close almost all partial not-spots - areas where there is currently only coverage from at least one but not all operators. It would also mean additional mobile coverage for 280,000 premises and 16,000 kilometres of roads.

If the operators agree to meet these ambitions on partial not spots, the Digital Secretary Nicky Morgan has been clear government will commit up to £500 million of investment to go even further to eliminate total not-spots - those hard-to-reach areas where there is currently no coverage from any operator.

Government-owned mobile infrastructure built as part of the Emergency Services Network will also be made available to all four operators, taking full advantage of government assets. This is expected to contribute to the coverage target by delivering up to an additional 2% of geographic coverage per operator, in some of the most remote, rural locations.

The Shared Rural Network proposal is subject to legal agreement. The Government’s ambition is to reach a formal agreement on it early next year.