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Broadband Tax to be Introduced in the UK

Earlier on in the year Lord Carter revealed in his Digital Britain report that there needed to be a levy placed on every Briton with a fixed line telephone. The money raised from this would be put to use to ensure that the UK meets the targets for faster internet connections and to have the ability to cope with future technologies. It is also aimed hoped that by 2012 there will be universal access to broadband throughout the UK as we still have remote areas that can’t get connected. The new measures that are to be introduced are to follow the guidelines set out as described below:

“Digital Britain is a statement of intent and ambition, a commitment to infrastructure and access, and an overdue recognition of the industrial importance of the creative industries”

Today it seems that the new Broadband Tax will be made law before the next general election, which is expected to be early next year. It is expected that everyone will be taxed an extra 50p per month which will raise around £175million per year, which will go towards high speed networks. So each household will be expected to contribute an extra £6 a year to enable the UK to get caught up and give us even faster connection to the web. Brilliant!

50p

Hopefully this will get passed and introduced but I can see that it will get opposition from the Conservative party as to them it’s just another tax being sprung on us. The potential benefit though will help the country to continue to grow especially in the online markets which is great. I’m sure people can justify the cost of their lunch once a year to contribute to a new and high speed infrastructure.

4 Comments

  • James

    Somehow it seems backwards to me for people with broadband to be paying for everyone else to get it. Why not just add 0.001% to income tax and be done with it?

    Also – the more people with broadband, the more tax would be coming in. Conveniently. £10 says that the tax would stay after 2012 too!

    Why not tax everyone without broadband 50p a month then they’d have some incentive to sort it out 🙂

  • Becky

    @james .. the tax is directed at anyone with a fixed line telephone so I presume those without broadband have to pay the same too

  • yoshimi

    something about this sits so uncomfortably with me;

    partly it’s the fact that I don’t think this should be a priority (if we can all afford £6 a year for this, surely we can afford £6 a year for all of the other things the country needs, education improvements for instance).

    partly it’s the profits that the broad band providers will be making on the investment the UK public are making…unless they will pay us that money back? or perhaps broadband will be made free or included in the cost of the tv licence?

  • James

    Hmm, good point.

    Maybe I’ll have to check out some 3G wireless broadband and ditch the telephone line 😉

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