Feeds

Labour to push for broadband tax before election

Tory row ahead

Choosing a cloud hosting partner with confidence

The Labour government has reaffirmed its commitment to a 50p per month tax on every landline, and vowed to push through the necessary legislation before the general election in May.

Plans for the levy, to subsidise rollout of fibre-based broadband services in rural regions, were revealed in the final Digital Britain report in June.

But after the announcement there was little sign of Whitehall moving to implement the new tax, and speculation grew that it would be dropped. In August the new Digital Britain minister Stephen Timms added to doubts when he declined to commit to action before the election.

Yesterday however, he confirmed legislation would be brought forward before next May. "[It] will be in the Finance Bill which I'm also responsible for at the Treasury, and my aim is that we should legislate for that this side of the general election," he told a British Computer Society audience.

The revived plans could set up a political clash ahead of the election. Normally the last Finance Bill of a parliament contains only uncontroversial measures, but the Tories have already publicly opposed a broadband tax.

The government estimates the levy will raise between £150m and £175m per year. It wants communications providers to act as tax collectors by adding 50p to every bill and then passing it to a central fund. Most of the industry is expected to resist such a levy.

BT is committed to connecting 40 percent of the country to faster broadband by 2012. It is installing fibre as far as street side cabinets, which will offer theoretical downstream speeds of up to 40Mbit/s.

The £1.5bn investment is targeted at densely populated urban areas, prompting fears of a new digital divide. The tax and subsidy fund are Labour's policy response.

Separately today, BT announced it expects to double the reach of its ongoing ADSL2+ exchange upgrade programme, which offers downstream speeds of up to 24Mbit/s over existing copper infrastructure. It said 75 per cent of premises will be covered by 2011. The programme is years behind schedule. ®

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.