UK MPs frown on proposed tax to fund broadband network

A government proposal to levy 50p per month charges on subscribers with fixed phone lines to help fund ultra-fast broadband has been slammed as 'unfair' by MPs in the UK.

According to the cross-party Business Innovation and Skills Committee most of those who would pay the tax would not benefit from the faster broadband service.

The committee said the focus should be on providing basic broadband for all and allowing higher speeds to be delivered through the market mechanism.

According to the government the plan offered the best way to  drive further investment as faster speeds are vital to the UK's growth.

The committee argues however that the 50p levy on fixed telecommunication lines is ill-directed as it would place a disproportionate cost on a majority who will not or are unable to reap the benefits of the charge.

The committee's report also said the scheme, expected to net £175 million per year, might end up harming the market.