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Broadband tax still on Digital Britain agenda
Posted on 18 Aug 2009 at 14:30
The Government has dismissed reports that it plans to ditch the controversial landline tax designed to fund next-generation broadband in Britain.
The so-called Final Third fund would impose a £6 per year tax on every landline in the UK, in order to pay for the rollout of a 2Mbits/sec broadband connection to every home in the country.
Following an informal meeting with Financial Secretary Stephen Timms, a number of broadsheets reported that the legislation would be shelved until after the next general election and canned completely if the Conservatives won at the ballot box.
But a spokesperson for the Department for Business, Innovation & Skills has told PC Pro that the plans are still very much on the agenda and could even be pushed through before the election, apparently despite the risk of an electoral backlash.
"The Government remains committed to the timetable for introducing the 50p levy on fixed lines in 2010, as set out in the Digital Britain (pdf) report,” the spokesman said. “We will be consulting on the 'Final Third' fund in the autumn, but no final decisions have yet been made about the legislative vehicle for introduction of the levy."
The government remains committed to the timetable for introducing the 50p levy on fixed lines in 2010
The spokesperson claimed that Timms' comments had been taken out of context, and was only saying that he could not guarantee that the Tories would continue with the tax should they get into power. The Conservatives have widely condemned the fund as a "broadband tax" and the strategy would almost certainly be scrapped under a David Cameron government.
Time, however, is running short if the required legislation is to be implemented before the election. In an election year the Government publishes both a short and long version of the Finance Bill, and the spokesperson says the government still plans to include the levy in the short, pre-election Bill.
Author: Stewart Mitchell
As I'm on Virgin Media (no fixed line) and use Skype, will I avoid this?
By Lacrobat on 18 Aug 2009 
so why not also a 50p per drink tax for drinks served in a pub to cover the cost of misbehaving and or medical care
By invalidscreenname on 18 Aug 2009
So what are the Tory's plans
It would be interesting to know how the Conservatives plan to fund a universal broadband service level.
By milliganp on 19 Aug 2009
The government should be taxed for every lie
Stealth taxes, hidden meaning, deception, lies, theift. The way of the Labour lier.
£6 this year, £60 next. It's to cover the cost of the government syping on you, hacking into your computer, and of course the odd second home!
By skgiven on 20 Aug 2009
Here we go again!
Now this is fact: If the government ever gets involved with any business it's the start of the spiralling downturn to rack and ruin! £6 for a stealth tax as mentioned earlier - That's what it is, nothing more and nothing less. I bet MP's will be able to claim theirs back!
Michael
By photomanlondon on 20 Aug 2009
Universal Service
It seems to me that you can compare this to the Post Office. I live in Birmingham and the true cost of posting a letter to London should be much lower than posting one from Aberdeen. But one cross subsidises the other and we all get access to postal services at the same rate. While I'm not delirious at the prospect of paying an extra 50p per month, if it means that everyone in th UK can access half decent broadband at a reasonable price, I'm happy enough. In the long run we will all benefit from universal access.
Just because the Government suggests it doesn't mean it's automatically wrong.
By keithh14 on 20 Aug 2009
SShhh... We'll Tax it first then VAT that as well.
I think that the government should keep its nose out of this.
Every thing it touches seems to triple in cost within ten years.
People do not have to live in the middle of nowhere... it is their choice.
Solitude from technology may even be a preference.
By lenmontieth on 21 Aug 2009
Tax Tax Tax
Not another tax, taxes come but never go and are never use for the perpose they were intended, 50p now but what about in another year, we cant keep bailing out everyone, when you think of the profit these broadband companies get, why can they not fund this venture because they know its a waste of time, doesnt this govenment know that technologies change by the month, this is just away for some extra tax, get all the big companies together and invest in a fibre optic system that all share like what bournemouth are trying at the moment, and thats 100m+ 2m isnt even a dream its a pass time thats the future, this money will go into the man at the tops pocket not in this stupid venture.
By Ellismd on 22 Aug 2009
Why should I pay for somebody else's broadband ?
Nobody else pays for my broadband.
If it is more expensive to provide broadband in remote areas, then people living there should pay more to cover those costs. People living in remote areas gain advantages such as cheaper housing, more peace and quiet etc. Surely then they should pay for any disadvantages.
Besides, nobody is forced to live in remote areas, it is their choice to do so. Why should I be taxed for other people's choices?
By digitallogic on 22 Aug 2009
Its the job of the companies to upgrade THEIR networks.
Why should we pay for upgrading their networks, they earn Billions in profit, so why cant they pay. I dont see why i have to pay to upgrade their netowrks for them to earn a profit. Let them pay for their own upgrades!
By richieus on 27 Aug 2009
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