Perth received a major boost when the Chancellor announced the city was to receive a multimillion-pound upgrade to its ailing broadband infrastructure.
Business leaders have been campaigning for major investment in the network covering the city and surrounding region for the past four years and were delighted when Mr Osborne confirmed that Perth was included in the next tranche of 12 cities to receive cash from the Urban Broadband Fund.
Aberdeen is also in line to receive a share of the £50 million pot, which is to be matched by private sector funding.
The exact amount being allocated to each city has not yet been decided.
The move will mean homes and businesses in Perth will have access to ultra-fast broadband of at least 80-100Mbps and high-speed wireless internet access will also be more freely available.
Vicki Unite, chief executive of Perthshire Chamber of Commerce, said the announcement was excellent news, especially for small businesses operating in the area.
She said: ”It is a particularly positive development, after the restoration of city status to Perth. We hope it will be another building block that will help revitalise the Fair City.
”Access to high-speed broadband is crucial to the future of our economy not just in Perth itself, but in the wider rural parts of the region.
”Superfast broadband is a vital piece of infrastructure to support thriving and competitive local businesses. It can also attract inward investment and new companies to Perthshire.
”We look forward to receiving more details about Perth’s share of the UK Government’s £50m support funding and the timescales involved.”
Ann Angus, owner of the Clunie Guest House on the city’s Pitcullen Cresent, said a reliable broadband connection had become key in attracting customers.
”It’s something that customers ask for and it can put them off if you don’t have it,” she said. ”Five years ago it wasn’t a factor but customers now see it as essential because they book their flights, plan trips and everything else. It’s not just for playing on the internet.”
James Batty of the Gamers Pad in South Street offers online gaming to customers.
He said: ”It will be quite a status symbol to have it. People come here because their home connection isn’t up to it.”
The move was roundly welcomed by local politicans yesterday.
Perth and Kinross Council’s enterprise and infrastructure convener John Kellas said: ”I warmly welcome today’s announcement, which will contribute to making Perth a smart, super-connected city.
”This is a key element of the council’s city development strategy, supporting our ambitions for the Fair City’s future.
”This will help our citizens, visitors and businesses to be better connected and increase their digital participation.”