£6 broadband tax to be made law before election, minister says
Digital Britain 'broadband tax' on landlines will be in finance bill this year, treasury minister Stephen Timms says
The government is pressing ahead with plans to introduce its controversial £6 a year broadband tax before the election, despite potential opposition from the Conservatives.
Stephen Timms, the treasury minister in charge of implementing the Digital Britain plan, said today that a 50p a month levy on all UK phone lines will be contained in this year's finance bill.
"My aim is that we should legislate for that this side of a general election," he said at a debate on IT and the economy in London organised by BCS, the chartered institute for IT.
The levy would raise £150m to £175m a year, Timms said, for a fund to support the development of superfast broadband networks over the next seven years.
But the response of the Conservatives to the plan has been lukewarm at best, leading to concerns that the levy would have to be ditched.
Parliamentary convention dictates that this close to a general election — which must be called by next summer — the autumn's finance bill should be short and uncontroversial. The winners of the election would then put in place their manifesto pledges in a full Budget next year.
But Timms reiterated, speaking after the BCS debate, that "my intention is to pass legislation before the election".
He gave no indication that an understanding has been reached with the Tories, suggesting the government has decided to go it alone on what it believes to be a matter of vital national infrastructure.
This would present a Conservative government under David Cameron with a serious problem, since the fund could bring fast broadband within reach of Tory-voting rural areas, and dumping it could anger industry and regional action groups.
Richard Wray
Wednesday 23 September 2009 11.31 BST
guardian.co.uk © Guardian News and Media Limited 2009
Digital Britain 'broadband tax' on landlines will be in finance bill this year, treasury minister Stephen Timms says
The government is pressing ahead with plans to introduce its controversial £6 a year broadband tax before the election, despite potential opposition from the Conservatives.
Stephen Timms, the treasury minister in charge of implementing the Digital Britain plan, said today that a 50p a month levy on all UK phone lines will be contained in this year's finance bill.
"My aim is that we should legislate for that this side of a general election," he said at a debate on IT and the economy in London organised by BCS, the chartered institute for IT.
The levy would raise £150m to £175m a year, Timms said, for a fund to support the development of superfast broadband networks over the next seven years.
But the response of the Conservatives to the plan has been lukewarm at best, leading to concerns that the levy would have to be ditched.
Parliamentary convention dictates that this close to a general election — which must be called by next summer — the autumn's finance bill should be short and uncontroversial. The winners of the election would then put in place their manifesto pledges in a full Budget next year.
But Timms reiterated, speaking after the BCS debate, that "my intention is to pass legislation before the election".
He gave no indication that an understanding has been reached with the Tories, suggesting the government has decided to go it alone on what it believes to be a matter of vital national infrastructure.
This would present a Conservative government under David Cameron with a serious problem, since the fund could bring fast broadband within reach of Tory-voting rural areas, and dumping it could anger industry and regional action groups.
Richard Wray
Wednesday 23 September 2009 11.31 BST
guardian.co.uk © Guardian News and Media Limited 2009
