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Landline duty will cost households with a fixed line phone service 50p per month
Chancellor Alistair Darling confirmed in his pre-budget speech yesterday that the Government would introduce the controversial broadband tax next year.
The Landline Duty will cost households that have a fixed line phone service £6 a year and be included in the Finance Bill due to become law next year.
The duty, which was first announced in the Digital Britain report earlier this year, is expected to raise around £175m annually with the revenue generated going into a ‘pot’ to help finance the infrastructure needed to provide next-generation broadband in remote and rural areas.
In his speech, Alistair Darling said: "We are modernising the UK's digital infrastructure so we can provide the next generation of superfast broadband to 90 per cent of the population by the end of 2017.
"This will be funded through a duty of 50 pence a month on landlines which will be included in the Finance Bill.”
A consultation on the practical aspects of the new Landline Duty is to be launched shortly and this will be followed by a consultation on the procurement approach to investing in Next Generation Access.
Commenting on the announcement, Julie Owens at moneysupermarket.com broadly welcomed the move and said: “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."
Telecoms companies and internet service providers (ISPs) are not so impressed and said if they have to put in place procedures to collect the charges , the administration costs these would be passed on to consumers.
BT has also said the revenue generated would not cover the costs of rolling out next-generation broadband to rural areas.
The Conservatives, who want a more market-based approach to the problem of supplying super-fast broadband, said they would scrap the tax if they win the next election.
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It`s Wrong
It is wrong that ALL people in the UK will have to pay this tax. It should only be applied to those who have broadband. It would be quite EASY for the ISP`s and government to work together on this. And anyone getting broadband - at a later date - would automatically be included in the 50p a month tax.
Posted by John-H, 10 Dec 2009
death of the landline
with the amount of people using mobile phones increasing all the time the landline phone is in decline already, i think this tax will just push the landline phone onto the scarpheap, especially home phones. i think mobiles will increase and the use of things like skype, this take will kill the landline at homes, im not bothered because i have cable and no landline unlike BT users who have to have a landline connection, watch the amount of people switch to cable, i know its only £6 a year but people will do it out of sheer disgust with yet another tax, but the government need lots of money to pay there expencies on all there homes so expect this tax to rise alot more.
Posted by john mcilwaine, 11 Dec 2009
No chance
Looks like my landline is going then. Anyone with a modicum of common sense will know that it will be 50p per month when first introduced, then rapidly increase year after year. It's just another tax to help fill in the black hole that this government has created.
Posted by Andy, 11 Dec 2009
Broadband Tax
It will take 8 Years to get this faster speed. But only 1 Year to put a man on the moon. Thats £48 from every houshold in the UK plus interest. Until we get it Put it into force straight away. This goverment stinks.
Posted by Dave Fry, 11 Dec 2009
50p a month on land line is a stealth tax
the Governent says the 50p stealth tax on land line for the next generation of Broadband it a load of C**P its just another stealth tax that will not even go to the next genration of Broadband but what stick in my gut it those who don't even have broadband, but have a land line still have to pay the 50p stealth tax a month Enough said.
Posted by Allen Reeve, 11 Dec 2009
What's the Point
Why pay an extra goverment tax for something that will be out of date before it's available. The only way would be to ensure the people who make profits from the telephone system keep their service/inferstucture up to date. Instead we are having to bale out another industry because they manipulate the goverment for money.
Posted by Tony Brewerton, 11 Dec 2009
doomed
It really does not look hopeful for those of us stuck with 730Kbps broadband. Takes ages to download, useless for much business, and unable to take advantages of bundled packages at much reduced cost. Let us hope that someone takes sympathy on us one day.
Posted by Alan Fox, 11 Dec 2009
Remote Corners of Britain ?
After suffering for years the famous BT Broadband of 8 Mbits/sec in the UK. (The highest speed I ever achieved was about 3.5 Mbits/sec in reasonably populated Bradford on Avon). Now I am living in a country which can really claim to have really 'remote' areas...Canada. My ISPs, both Rogers and Videotron cable have delivered a constant reliable 10 Mbits/s in Ottawa. They don't complain much about internet speeds in Iqualuit or Nunavet either (look them up in Google)not to mention Yellowknife or Edward's island. Does the British Government really feel enough effort has been made by the Broadband suppliers to justify their fees before taxing the service as well ?
Posted by Paul L White, 12 Dec 2009
Broadband tax
If anyone believes this tax will improve the infrastructure then they are barmy. Any tax raised be will predominantly used to employ yet more overpaid and underworked civil servants on the pretext that the work involved cannot be coped with by the present bunch of layabouts. It would be better put in private hands with tax incentives related to the speed with which the service is implemented
Posted by David French, 14 Dec 2009
Broadband Tax
This is another excuse of getting more tax from people and who is to say it won`t go up in time. I think if the government could get away with putting tax on fresh air they would do. Give us a break `!!!!!!
Posted by taffy, 12 Dec 2009
Catching the have-nots
We have two land lines, one for telephone, one for dial-up internet as BT will not provide broadband (too far from the exchange). We have no mobile phone service. Therefore we will be paying twice over for urban households to receive next-generation broadband when we are denied any broadband at all.
Posted by patricia dodd racher, 20 Dec 2009