Government Confirms Broadband Tax before Next Election

Posted by: Ironside

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Ironside

It seems that the government is going  ahead with a so-called tax on residential network connections  to fund the next-generation optical fibre access.  I'm sure I speak for a lot of people when I say I am not happy about this at all.

 

Government plans to legislate on its controversial broadband tax before the next general election have sparked angry criticism.

Stephen Timms, the Treasury minister in charge of implementing the Digital Britain plan, announced he will introduce the law in the next finance bill.

The confirmation that a charge of 50p a month on all land lines will go ahead was branded "an old economy solution to a new economy problem" by the Conservatives.

Mr Timms said: "It is vital for jobs and growth that Britain has a world-class digital infrastructure.

"I am wholeheartedly committed to plans set out in the Digital Britain white paper for a levy to ensure that over 90% of the country has access to next generation broadband by 2017.

"It remains our aim to legislate in a Finance Bill during the forthcoming Parliamentary session."

Jeremy Hunt, shadow culture secretary, said: "Rather than taxing Britain's hard pressed families further, we should be seeking to stimulate investment in broadband through the regulatory structure.

"Slapping on a broadband tax is an old economy solution to a new economy problem. Labour has run out of ideas and the taxpayer is being forced to pay the price."

There had been reports in recent months that the Digital Britain report, which was unveiled in June, could be derailed amid growing opposition.

But a spokesman for Mr Timms said: "There were reports it had been kicked into touch but this is not the case. He made clear it was the intention to introduce legislation on a financial bill."

 

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