Multiple phone line taxes for individual homes could boost high-speed services

In a bid to increase the amount of revenue available for the development of high-speed broadband services, many homes could be charged multiple phone line taxes.

The government recently announced plans to impose a £6-a-year tax on all homes with a phone line before next year's general election to raise money to develop next-generation broadband networks throughout the UK.

However, a leaked government memo suggests homes with multiple phone lines may be charged a separate tax for each line, meaning nearly two million homeowners could be asked to pay over £20 a year with VAT, reports the Times.

The news has prompted calls for clarity in relation to what the government intends to do, especially as many businesses have multiple phone lines.

Sara Draper, head of knowledge economy at the CBI, said: "The costs must be kept proportionate and so the government needs to clarify exactly how the charges will apply to individual businesses with multiple lines."

Alternatives to laying fibre optic cabling are being considered in rural areas due to the expenses the process incurs, with wireless networks also capable of enhancing VoIP hardware.