New broadband tax 'robbing Peter to pay Paul'

The minister for Digital Britain Stephen Timms has today spoken of a new 50p per month tax for everyone with a fixed line telephone, enforceable ‘before the next election', to fund the development of high speed broadband networks.

Steve Weller, Marketing Director at uSwitch.com, comments: "We are dismayed by today's news. If the Government truly intends to tax home phone users to fund the universal roll out of broadband, then this is a classic case of robbing Peter to pay Paul.

"Many of the home phone customers set to be stung by the new tax will be extremely unhappy to see their bills hike by a further £6 a year. Vulnerable groups in the country, such as the elderly, rely heavily on their home phone but have absolutely no use for broadband. It's outrageous that they will be forced to fund the creation of a Digital Britain that they will play no part in.

"In its vision of a digital nation, the Government has made a sweeping statement in a bid to keep up with the rest of Europe, without actually thinking through how it will be delivered and, more importantly, how it will be funded. Imposing a tax on telephone users is certainly not the answer. We are talking about a digitally dependent economy and society, and as such, the Government should be looking to share the burden across businesses and consumers alike."