The UK government has today muddied the waters somewhat with regards to the proposed broadband stealth tax which would see a charge of 50p a month on every fixed phone line in the UK. This six pounds annual charge would apparently go towards the cost of the next-generation broadband network in the UK despite the fact that British Telecom appears to be leading the way with the vast majority of the investment required.
Treasury Minister Stephen Timms has suggested that there is a possibility that the “stealth tax” could be abandoned during election year which is nothing short of electioneering. Apparently the government will be discussing the issue in more detail in the autumn with the likelihood that the move would be shelved as we approach the next general election.
Even though the UK has made great strides in the broadband industry this would appear to be as a result of private sector investment rather than government investment. We have seen the promises, we have seen suggestions but so far we have yet to see any money from the UK government with regards to the improvement of broadband connectivity in the UK. Can we be certain that the income raised by the proposed fixed phone line stealth tax will be directed wholly at the UK broadband sector?