Tories attack broadband tax

Stephen Timms wants to push broadband proposals through Parliament

A fresh attack on plans for a "telephone tax" to fund superfast universal broadband has come from shadow culture secretary Jeremy Hunt, a clear signal the Tories will seek to block the legislation when the Government introduces it next year.

The proposals are part of the Finance Bill, due to be debated next year. The Bill is required to give retrospective power to tax authorities to implement changes announced in the budget.

Treasury Minister Stephen Timms, who is in charge of implementing "Digital Britain", yesterday confirmed the £6 a year charge, raising £175 million a year to subsidise the universal application of superdfast broadband, would be included in the bill.

Today Hunt denounced Timms' plan, saying: "Rather than taxing Britain's hard pressed families further, we should be seeking to stimulate investment in broadband through the regulatory structure. Slapping on a broadband tax is an old economy solution to a new economy problem. Labour has run out of ideas and the taxpayer is being forced to pay the price."

The legislative timetable would normally see the bill passed later in the summer. But a looming election will mean the government may try to push the bill through in the spring.

But the Tories' ability to curtail the bill is limited because the legislation must be passed to avoid revenue dislocation, which would be damaging to any incoming administration.

A Treasury spokesman said it was therefore clear the levy, a key plank in the digital strategy, has not been kicked into touch.