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WimVDD-
Yeah I guess it would be new wheel time to go up to 8 speed. Looks like best range you can do on 7-speed is 14-34 - which isn't absolutely terrible...
There is also the 9/10 speed cassettes for just a few pounds more but the shifters will be more expensive as well and there are some compatibility issues
frankenbike
Just make sure that your rear wheel fits an 8 speed cassette (I think spacing needs to be 135mm for that, but not 100% sure) or find a cheap rear wheel.