Business and Communications Departments Obscure Broadband Tax Proposal

Within just hours after the Treasury minister Stephen Timms, who is also given the charge of communications, technology and broadcasting department, had hinted at shelving the GBP 6 an year broadband tax plans recommended by the Digital Britain report, a business department spokeswoman seemingly deprecated the idea, stating that the government was still mulling the scopes of a monthly stealth broadband levy of 50p on the fixed phone lines of the UK. The Digital Britain report published in June by the former communications minister Lord Carter, put forth the levy proposal with a view to fund the next generation broadband network rollout in the UK.

According to the Business, Skills and Innovation department spokeswoman, the government of the United Kingdom maintained its commitment to the timetable for implementing the 50p monthly levy on all UK fixed phone lines in 2010, as proposed in the Digital Britain report. She had revealed this to The Register website. She also told the website that the government would consult on the “Final Third” fund very shortly, although they have not arrived yet on any final decision about the legislative vehicle for the tax implementation. The words of the business department spokeswoman seemed more a rectification of the statement given by Timms a few hours back, on the broadband tax proposal.

As a matter of fact, Timms had told Sunday Times that he could not definitely commit to any such tax being legislated before next year’s general election. He added that he could not say that for sure. He had also reportedly explained to the journalists that a lengthy bill listing more measures than the popular ones, was unlikely to be pushed through before the general elections in the UK. According to the publication, another of his statements was that the contentious things would have to wait until after the election. It is widely perceived that a finance bill following the budget in March 2010 would contain the tax. However, this would be interesting to watch as the Tories are expected to repudiate the broadband tax of 50p that comes included in the finance bill.

Meanwhile Chuck Doherty, the broadband expert of Broadband Suppliers opined that Stephen Timms could’nt have been more honest in his stating that shelving the tax proposal for the time being was more sensible, for he might have taken into account both the difficulty in gaining support in the parliament to push through with it, as well as the impact it could have on the fortunes of the Labour in the forthcoming general election. However, Doherty plays down the statement put forth by the business department spokeswoman, describing it as ‘mere gimmick’. He thinks that the Business, Innovation and Skills department that currently aspires to take over all other departments in the country, had apparently no other way to go, but to make people believe that they were steady on their course.

Doherty says, “Making people believe that the tax proposal was on its course remained the only way for the department for Business, Innovation and Skills, for this is one department today that takes care of more than its own priorities. Moreover, it must have also realised the ignominy that Timms’ revelations could bring upon them, (even though lately) as that (Timms’ hinting at the shelving of levy) would had definitely triggerred nothing less than a debate even within the Labour. And the subject for the debate would undoubtedly be – Do the government prioritise criminalising the teenage illegal downloaders over the intenet, rather than the prospect of providing a 2Mbps broadband connection to every household in the UK?”

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