Government 'to push through broadband tax'

Wednesday, November 18th 2009

A minister has claimed the government will force through a new tax which will be used to fund fibre optic broadband networks across the UK.

Government 'to push through broadband tax'

The government's Digital Britain minister has suggested that the proposed tax on fixed phone lines, which will be used to fund widespread fibre optic broadband access, is to be pushed through.

Stephen Timms has claimed that the new 50p-a-month rate will be introduced as part of a finance bill that will be introduced before next year's General Election, reports the Yorkshire Post.

Speaking at an event in Leeds, the minister stated that the move was essential.

"If we take the view, as I do, that this is crucial for the development of the UK economy, then we need to find the resources to extend next-generation nationwide," he explained.

"For a long time, purely market-led roll-out will not reach more than about two-thirds of the population. We cannot afford to leave a third of the population behind."

Charles Dunstone, the chief executive officer of TalkTalk, recently suggested that the tax would raise the cost of broadband to the point where at least 100,000 low-income homes would be forced to give up their access.