A broadband tax costing Brits with a telephone line £6 a year was confirmed today by Chancellor Alistair Darling in the Pre-Budget Report.
The 50p-per-month broadband tax, which was first detailed in the Digital Britain report, will be used to pay for upgrading the UK's ageing copper network to fibre cables capable of offering 100Mbps internet access.
The next-generation fibre network will also be used in conjunction with wireless satellite technology to ensure every resident in Britain has 2Mbps broadband access.
"We have provided funding to help extend the opportunities of the broadband network to more remote communities," Darling said.
"We now want to go further, so we can provide the next generation of super-fast broadband to 90 per cent of the population by the end of 2017."
Despite opposition from consumers and ISPs that believe the tax will not generate enough revenue to fund the national roll-out, it appears Darling is pushing forward with the proposal.
Julie Owens at comparison website Moneysupermarket.com said: "The levy seems a little unfair to those who have a landline but no broadband, however 50p is a small price to pay for what the Government sees as vital infrastructure to the UK.
"This is clearly a big commitment towards bridging the digital divide and on the face of it will go a long way to enable consumers get a fair deal, regardless of their location. Broadband has become a household necessity in recent years and every home deserves to have fast access to what is now an essential service.
Owens also said that the government and Ofcom would need to ensure that the roll-out of a super-fast network reaches the places that need it most.
See also: Broadband tax will force 100,000 homes off internet
Comments
Carwyn Stephen said: We are going to fund this operation And guess what we ARE GOING TO HAVE TO PAY TO USE THE DAMN SERVICE WE FUNDED GOD DAAAAMMMIT
froth said: Lets just clear something upBT has had a monopoly on telecoms in the uk for 50 years The telecoms infrastructure is their responsibility They have continued to use ancient copper wire and archaic telephone exchanges whilst taking vast profits from the business Those profits could have paid for a high speed cable network many times over And this government thinks that we should foot the bill in taxha haPathetic Government pathetic policies pathetic countryWheres Cromwell when you need himPs We are decades behind most counries on this and other issues Canada has 20Mbit South Korea has 20MbitMost of EuropeIts 2009not 1909
froth said: Lets just clear something upBT has had a monopoly on telecoms in the uk for 50 years The telecoms infrastructure is their responsibility They have continued to use ancient copper wire and archaic telephone exchanges whilst taking vast profits from the business Those profits could have paid for a high speed cable network many times over And this government thinks that we should foot the bill in taxha haPathetic Government pathetic policies pathetic countryWheres Cromwell when you need himPs We are decades behind most counries on this and other issues Canada has 20Mbit South Korea has 20MbitMost of EuropeIts 2009not 1909
paul thatcher said: it will be like any other tax it will go up every year and when the work is finished on the fibre optic lines the tax will still be in place to line the government pockets
smith.n said: Cliff - I presume you think that Gordon Brown wasnt born in Britain
John Scott Clements said: whats the point it will not make one iota of differance in the speed
jspamkill said: 6 a year tax thin end of the wedge The fast bband scheme will start at an estimated cost of Xbillion When it is part completed the cost will have increased ten fold Annual bband tax increases will accompany this Some tiny group will receive free broadband as window dressing That looks to me to be the general track record of UK governments of all persuasions
Tom said: The Uk government along with the BBC make over 8 million every day with the so called TV LICENCE FEE and still they want to tax the UK people again for this yet another RIP OFF We the UK people are ruled by a leadership that live in luxury while we are forced to buy these RIP OFFS Roll on the next election We all need to make BRITAIN GREAT again
spudhed said: if they do what they say they will with the cash then its well worth it however why should we be taxed to upgrade BTs network all isps with the exception of virgin media lease their bandwidth from BT who make seas of cash from it should the cost of the upgrade not come from their pockets were already being taxed so that the banks can make a profit now were paying for BT to make even more money tooalso why is it that they will not use the cheap option and take the h2o networks system which uses fiber fed down existing sewer pipework avoiding digging up roads and making it much much cheaper and quicker to implement done correctly the system could be in place nationally within 5 years maybe even less rather than taking 7 years and costing the earthmy final note is this though sure its a tax but at least something is going to come of it we are all being taxed to death to pay for the olympics which really benefits no-one outside of the capital
Cyteck said: Clearly any intelligent person with an ounce of reason will think a 6 a year tax on them just because they happen to have a land line telephone connection is very unfair amp unreasonable Its completely obvious whats going on here it is a fact that successive UK governments have failed miserably to fund the national level broadband infrastructure amp broadband services This is another example of leaving the problem to the private sector amp the so called market the result is another failure Governments including Tony Blairs administration failed to have ANY long term vision for Internet services in the country amp then failed to fund it its that simple We cannot expect the private sector to deliver what is needed even now Sadly there remains no realistic longer term vision for IT UK provision in my opinion
MalcolmF said: Nearly as well thought out as those brainchildren of the other lot of sleazy grabbing muppets the Poll Tax and doubling VAT Both were measures that we were assured would be of benefit to all and in the event both proved themselves to be trade killers one by making goods more expensive to those who spent most and the other by effecively reducing the income of those who spentIt looks like this chancellor is singing from the same discredited bookIts difficult to know who to boo loudest
maggie said: if they stopped there extra expenses taxpayers wouldnt have to fork outhow does he expect pensioners on 130 a wk to afford that
Derek Rothwell said: If anyone for one minute believes that this tax will actually be used for what they say it is for or that it will come to an end after 7 years or that next year it will still be 50p plus VAT a month then you need to go see a man with a couchRoll on the general election
Roy Eaton said: is there any guarantee that the money will be used for enhancing broadband and not as a stealth tax to finance the governments debt
John Greenaway said: If they will fulfil their promises of a faster internet access then I will pay the 600 But as with all their promises they always fall far short of our expectations we will wait and see
Contax said: Just charge for things like iPlayer as areas with slow broadband cant use it so those with better connections should pay not telephone line users if charged to BT land line renters it should also be added to cable connections and all mobile contracts with PAYG add a 1p connection fee to every call made this way the heavier users would pay the most as they have the best service and other areas would catch up faster and then they would join the list of users contributing
kermit said: If the Tory Government had not sold BT who have to now make profit for their shareholders the present Government would not have to assist in upgrading the infrastructure of the telephone lines for public use they should bring the infrastructure into public ownership before the next load of Tories get a chance to sell off anything that is left to give tax cuts to keep them in power
wilsenda said: How come that only the politically ignorant and prejudiced have commented on this subject Of course the money will be devoted entirely to the fibre rollout and it will be continued whether Cameron and his bunch of no-hopers UKIP or BNP form the next Government Some people need to get out more
JL said: It has to be paid for Does this mean that we will get the broadband speeds we have been promised for yearsIf the infrastructure is paid for by the government ie us does that mean that te infrastructure is nationalised
CD said: I am not happy about this at all but I wont be taking up a mobile phone deal in protest Mobile phones carry too many microwave health hazards as far as Im concerned yes I know you dont put the thing to your ear to use the Internet but Im not getting sucked into mobile ownership There are also good reasons to keep a landline especially when dealing with finances a lot of companies want you to provide a proper telephone number for contact that is linked to a propertymobile phones are nomadicSad thing is I dont think it will stop at 50p per monthand the more people who ditch their landlines the more money the rest of us will end up paying to compensate A totally idiotic tax especially for the elderly who often dont possess computers let alone Internet access