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Digital Britain team recommits to 50p levy
The Digital Britain team has rejected any suggestion that the 50p copper phone line is to be dropped.
In the face of the Government seemingly cooling on the idea, the Digital Britain team recommitted itself to a 2010 deadline for the 50p levy to become established (digitalbritainforum.org.uk).
The move follows much debate within politics and new media as to whether the tax, which surprised many when it was suggest in the Spring, will ever be initiated. It has the problem of people feeling they are subsidising next generation access (NGA) in other regions when they may not even be interested in having it themselves.
The proposed 50p monthly levy is expected to raise £150m to £175m per year which would go towards companies and communities bidding, through a reverse auction, for funds to roll out NGA in areas where the business case for fibre is less compelling for BT, or another commercial telecommunications company.
Timms cooling on the levy?
At the weekend Stephen Timms, the new minister in charge of Digital Britain, appeared comparatively cool on the idea of the 50p levy. In interviews with the Guardian and The Sunday Times he predicted the tax would not be presented to parliament until after the next general election.
This means that the levy is unlikely to feature in legislation he is due to present to parliament this autumn in order to make the necessary legal changes to allow the Digital Britain report to be implemented.
The Tories, who are currently way ahead in opinion polls, are committed to dropping the tax.
Hence the Digital Britain team has felt the need to reiterate, once more, that Government policy is to stick with the tax, despite Timms’ admission it will probably not be put before parliament before the next election in Spring 2010.
The post also criticised commentators who claim the Government should knock BT ‘into shape’ and ‘get on with it’ pointing out that the issues were far too complicated for immediate action and that the levy would raise a serious amount of money to roll out much needed NGA projects.