VAT change could convince people to seek long-term broadband contracts

Long-term broadband contracts could be sought by more people before the end of December in order to avoid VAT returning to 17.5 per cent in January.

The chancellor, Alistair Darling, reduced VAT to 15 per cent last year in order to help tackle the recession, but the move was only ever intended as a short-term measure.

Web users could find their monthly subscription charges rise slightly as a result, but those looking to avoid the increase for as long as possible could choose to sign up to a long-term broadband contract before January 1st, in which case the 15 per cent figure will still apply, reports ISPreview.co.uk.

Customers could choose to exercise caution, however, before signing up to a long-term contract, especially if they have no prior experience with a specific internet service provider, as nobody enjoys being caught out by potentially poor customer service and an unreliable connection.

Virgin Media and BT have both announced major investment in next-generation networks this year, which can help maximise VoIP hardware and minimise download times.