SMALL firms are not trading as efficiently online as they could be because of ongoing issues with the quality of broadband speeds and connections, according to the Federation of Small Businesses (FSB).

The organisation has produced the “Broadband: Steps for an Incoming Government” report to demand universal access to high-speed broadband.

It is targeting newly created Broadband Minister Ed Vaizey to deal with the situation which it says puts some small enterprises – and especially those in rural areas – at a disadvantage to competitors able to access faster connections.

Research by the FSB found that almost a third of small firms were offered speeds of between two and four Mbps, but 94% said they felt their service providers’ offerings were failing their advertised claims.

It claims that fast and reliable broadband speeds can help small firms develop their business and strengthen economic growth and putting in place super-fast broadband could create 60,000 jobs and add £18bn to the UK’s economy.

FSB national chairman John Walker said: “Broadband is not a luxury but an essential service. We welcome the creation of a Broadband Minister but he must act quickly to ensure the universal service commitment for basic broadband speeds is an obligation if the country truly wants to become a global competitor.

“Until then the UK’s 4.8 million small businesses will be left lagging behind as well.”

The FSB welcomed the Government’s proposal to look at using part of the BBC licence fee to help finance the broadband roll-out. It called for a stronger role for the telecommunications ombudsman and Ofcom, giving them the ability to rule directly against all service providers, their contractors and group companies.