Broadband tax could harm small businesses

Date: 3rd November 2009

Small businesses who work from home could be affected by a new broadband tax, an internet service provider has claimed.

Comments from TalkTalk claim that 100,000 households in the UK will no longer be able to afford internet services in their household following the levy.

Government plans revealed that the authorities are contemplating adding a 50p tax to phone and broadband bills to fund the introduction of next-generation services.

The proposals, which were originally unveiled as part of the government's Digital Britain plans, are viewed as a way of raising more funds to pay for the nationwide roll out of next-generation broadband services across the UK.

Charles Dunstone, chief executive officer at TalkTalk, said: "This is an unjust and regressive tax on all phone customers which will subsidise mostly richer rural households that can afford high priced super fast broadband services."

"As well as being unfair we estimate that the increase in price will mean that over 100,000 mostly low income homes will be forced to give up their broadband lines," he added.

Digital Britain plans were originally announced in June 2009.