Businesses will suffer due to broadband tax

Members of the Tory party have stated that many businesses will suffer financially, and some will be pushed into the red, as a result of the Labour party’s controversial broadband tax.

As the Labour government launches a consultation into how the one billion pounds that it hopes to raise from the controversial broadband tax should be utilised the Tory party has launched an attack stating that businesses will suffer as a result of the broadband tax. Tory party officials have said that the consultation states that nearly five million businesses can expect to pay around fifteen hundred pounds a year as a result of the tax, and that this will leave many businesses struggling financially and could send some into the red.

The Tory party has said that businesses will pay around seventy million a year, and small and medium sized enterprises (SMEs) will really feel the pinch. The Shadow Culture Secretary, Jeremy Hunt, said: “I can’t believe the Government is pressing ahead with such a damaging and misguided tax. The fact that SMEs will be forced to pay up to £1,500 each is staggering. When even the Government admits the tax might not be needed and could cause damage, it simply must be dropped.”

Lord Mandelson, who launched the consultation, said: “This investment is about bringing the future of broadband to areas of the country that would otherwise miss out.” The investment funds will be raised through levying a fifty pence a month tax on landlines, which Labour hopes will raise the one billion to try and get higher speed broadband to ninety percent of the UK.

Labour has stated that industries need to be in support of the broadband tax, as without the funding that it will raise Britain is in danger of falling further behind when it comes to digital and broadband advancement.

Source – Times Online