The UK government today seems set have jettisoned plans for a 50p a month charge on UK telephone lines which was dubbed a “broadband tax”. The funds from the tax were forecast to be around £170 million a year which would have been used to improve and investment in the UK broadband industry. However, Gordon Brown’s calling of the election yesterday has forced the government to withdraw a number of potentially controversial taxes from the Finance Bill which is being pushed through Parliament as we speak.
The Conservative Party, which was in favour of repealing the broadband tax, will no doubt attempt to make political headway on yet another UK government U-turn. This is the latest in a long line of U-turns by Gordon Brown and while the government will attempt to use a lack of time ahead of elections as the reason for withdrawing the tax, voters will surely see through this excuse.
It will be interesting to see how the UK government responds to the withdrawal of the broadband tax which was seen as an integral part of the Digital Economy Bill. On a wider note, who will now finance government initiatives in the broadband sector?