Broadband tax could help deliver faster web services

A broadband tax being proposed by the government would be intended to help fund the development of next-generation networks.

The tax would be applied to anyone with a fixed home phone line, regardless of whether or not they have a broadband service, and would charge 50 pence a month in a bid to raise £175 million to be invested in faster networks throughout the UK.

Faster broadband speeds could facilitate better use of technology such as VoIP hardware and the tax could be in place before the next general election.

Stephen Timms, minister for digital Britain, told an audience at the BCS Chartered Institute for IT (formerly the British Computer Society): "We want to make high speed networks nationally available. The next-generation fund will help that and we will legislate for it this side of a general election."

The Conservatives are set to oppose the policy on the grounds that it would be an additional tax for British homeowners.

BT is investing £1.5 billion in the development of next-generation broadband networks throughout the UK.