Government may look to licence fee to roll out high-speed broadband

And it will abolish the IR35 tax code, deemed to discriminate against IT freelancers

The undertaking replaces Labour's 50p broadband tax proposal

A formal commitment "to ensure the rapid rollout of superfast broadband" was included in the Lib-Con coalition agreement setting out the government's plans for the next five years.

The undertaking replaces the last Labour government's proposal for a 50p per landline telephone levy to fund the development, which is now dead.

Instead the coalition states: "If necessary, we will consider using part of the BBC licence fee [currently supporting the digital switchover] to fund broadband in areas that the market alone will not reach."

It added: "We will ensure that BT and other infrastructure providers allow the use of their assets to deliver such broadband, and we will seek to introduce superfast broadband in remote areas at the same time as introducing it to more populated areas."

The agreement boosts hope that the government will at last rein in the taxmen in their attack on self-employed subcontractors and consultants.

The coalition also promises to review the IR35 tax code. It said: "This is part of a wholesale review of all small business taxation, and seeks to replace it with simpler measures that prevent tax avoidance but do not place undue administrative burdens or uncertainty on the self-employed, or restrict labour market flexibility."

Despite its decision to scrap ID cards and the identity database for biometric passports, the coalition has stated: "We support e-borders and will re-introduce exit checks."