AN ONLINE business based in Elberton is being hindered by slow internet speeds despite being told that it would be improved prior to moving into the village.

Costs for them to have faster broadband installed themselves have rocketed from £3,500 to almost £20,000 – a cost the firm is not willing to pay.

Home Leisure Direct, founded in 2008, moved to Redhill Farm Business Park in Elberton in 2011 and was assured by South Gloucestershire Council that the broadband connection speed of 0.8mbit would be improved within a year due to planned government funding.

Four years on and the speed has not been improved and it is now causing problems for the thriving business which in those four years has see its workforce quadruple, from four to 18.

The government launched its broadband voucher scheme in 2013. It included Bristol but not the business’ post code.

Through the scheme, small businesses would have £3,000 of the cost of installing faster broadband covered by central government.

The programme was extended earlier this year allowing Home Leisure Direct to apply for £3,000 to improve its broadband service.

In February Virgin were asked for a quote and a contract was signed in March. The installation cost was £3,500, with £3,000 covered by the government voucher scheme, leaving the company £500 to pay. On top of this, the annual rental is a staggering £6,522,20 - just to receive broadband.

At the end of April they received an email saying that the installation costs had risen to £4,404.72.

The additional cost was accepted after it was pointed out that the costs may rise following the completion of a survey by BT who would install all of the required infrastructure.

Just over two weeks later, on May 12 this year, they received another email from BT and Virgin saying that costs had now risen to £19,849.19 because “the circuit driver in your area is now non-existent and we would need to install one in order to get you connected and unfortunately this does incur cost.”

Digital marketing manager, Scott Flear, said that it was unfair for the company to be burdened with paying for necessary infrastructure to be installed for the area.

“We probably could have afforded to pay for it to be set up but we’re refusing on a matter of principle.

“We would effectively be paying for all the equipment to be set up for the whole are and that’s not fair on us.

“It’s the fact that Virgin are being so sly and constantly raising the price of the work that is most frustrating.”

A Virgin Media spokesman said: “We apologise to Home Leisure Direct and understand their frustration. From time to time we have to lease lines from other internet providers to supply broadband to businesses. In this instance, we were working with BT to provide connectivity and they significantly increased their quote which unfortunately would have been passed onto the customer.”

After finding out about the additional cost Home Leisure Direct managing director, Andy Beresford, visited the full meeting of South Gloucestershire Council to explain the firm’s predicament.

A South Gloucestershire Council spokesman said: “The contract for Phase 2 of our Superfast Extension Programme (SEP) has been awarded to BT. We are currently working with them on the detailed planning of the rollout which includes carrying out ground investigations and surveying.

“It is too early in the process to be able to confirm which areas will be included in the Phase 2 deployment, but as the planning, design and surveying work progresses over the summer, we will keep residents and businesses informed.”