No plans to scrap broadband tax, says government

Rural fibre networks may need extra funds

The government has flatly denied planning to delay the "broadband tax" needed to pay to complete the rollout of superfast networks to remote and rural areas of the UK until after the General Election next year.

A Department for Business, Innovation and Skills (BIS) spokeswoman said the government "remains committed to the timetable for introducing the 50p levy on fixed lines in 2010, as set out in the Digital Britain report".

She added: "We will be consulting on the 'Final Third' fund in the autumn, but no final decisions have yet been made about the legislative vehicle for introduction of the levy."

Concern about commitment to the £6-a-year-levy followed remarks by joint Treasury and BIS minister Stephen Timms, in charge of implementing the Digital Britain strategy, that it would be difficult to include such a controversial measure in a pre-election budget, normally constrained to essentials agreed with the main opposition parties.

The Scottish Council for Development and Industry said it was essential remote and rural areas are not left behind or they would face "a substantial and long-lasting active competitive disadvantage" which could only be avoided by government intervention.

The government believes rollout of fibre-based broadband can be achieved commercially in two-thirds of the UK, but that some form of stimulus may be needed elsewhere.