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24 February 2010 New broadband tax 'will not benefit the majority'

A group of MPs has expressed further opposition to Government plans to impose a new 'broadband tax' on UK householders.

Under the plans, which form part of the Digital Equality Bill, those householders with fixed telephone lines will have to pay a levy of 50p a month, which will be put towards funding ultra-fast broadband services.

The aim is to provide a minimum speed of 2Mbps across Britain by 2012, with most parts of the country receiving 'next generation' ultra-fast access by 2017.

The Government believes that upgrading the UK's digital networks will drive further investment, and will particularly benefit rural areas.

However, the Business Innovation and Skills Committee, a cross-party group of MPs, has warned that the majority of the people who would be paying the tax will not actually benefit from the faster service.

Describing the tax as 'ill-directed', the group is arguing that the Government should focus on making basic broadband available to everyone, and allow the market to deliver higher speeds.