Darling announces broadband tax

Commenting on the announcement of a ‘50p broadband tax' in today's Pre-Budget Report, Julie Owens at moneysupermarket.com said, "Following the initial proposal in the Digital Britain Report, today's announcement on the '50p per month broadband tax' will see households pay an additional £6 a year to help fund the roll-out of super-fast broadband across the UK, particularly in rural areas.

"The levy seems a little unfair to those who have a landline but no broadband, however 50p is a small price to pay for what the Government sees as vital infrastructure to the UK.

"This is clearly a big commitment towards bridging the digital divide and on the face of it will go a long way to enable consumers get a fair deal, regardless of their location. Not only will this open up the market, it will give them the option to search between a number of packages to suit their needs.

"Broadband has become a household necessity in recent years and every home deserves to have fast access to what is now an essential service. BT and Virgin Media have already begun the upgrade of their networks but the Government and Ofcom need to ensure that the roll out of a super-fast network reaches those places that need it most."