Feeds

UK Govt rejects tax breaks for broadband

Oh well, worth a try

  • alert
  • submit to reddit

Internet Security Threat Report 2014

The Government has rejected the use of tax breaks to stimulate investment in broadband networks in the UK.

The final report from the Broadband Stakeholders' Group (BSG) published today calls for Government to introduce some kind of fiscal measures to help reduce the cost of capital investment.

The BSG argues that such measure would help the roll-out of networks in marginal areas - especially in less densely populated rural areas.

It claims that the current "risk averse financial climate and the aggregate debt of the industry" is hampering attempts to raise the necessary cash to invest in broadband.

Tax breaks, it argues, could help to free-up funds to invest in the technology.

However, responding to the final report from the BSG the Government said: "The Government does not believe there is a case for fiscal incentives to stimulate infrastructure investment as proposed by the BSG.

"The Government believes that the use of the tax system to support particular types of investment should be limited to cases where there is clear evidence of market failure, sufficient to justify the costs of intervention, and the tax system is judged the most effective instrument for achieving policy goals.

"The Government does not believe that the criteria apply in this case."

However, addressing those businesses that have so far been reluctant to adopt broadband services to help boost their competitiveness, the Government said that they should use existing tax breaks to help offset the costs of investment.

Douglas Alexander, e-commerce minister, said: "Too many people in the sector don't realise that there are a number of relevant initiatives including tax relief on establishing and maintaining broadband connections, that also apply to employers paying for connections at employee's homes."

Elsewhere, the Government said it would step-up awareness of broadband and encourage the rollout of hi-speed Internet services in rural areas through the promotion of companies sharing infrastructure. ®

Related Links

The First Report of the Broadband Stakeholder Group and the Government's response

Related Story

UK's broadband future revealed Monday

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Same old iPad? NO. The new 'soft SIMs' are BIG NEWS
AppleSIM 'ware to allow quick switch of carriers
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Brits: Google, can you scrape 60k pages from web, pleeease
Hey, c'mon Choc Factory, it's our 'right to be forgotten'
Of COURSE Stephen Elop's to blame for Nokia woes, says author
'Google did have some unique propositions for Nokia'
It's even GRIMMER up North after MEGA SKY BROADBAND OUTAGE
By 'eck! Eccles cake production thrown into jeopardy
Mobile coverage on trains really is pants
You thought it was just *insert your provider here*, but now we have numbers
Don't mess with Texas ('cos it's getting Google Fiber and you're not)
A bit late, but company says 1Gbps Austin network almost ready to compete with AT&T
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.