Government plans for a “broadband tax” of 50p a month on all phone lines to pay for better broadband speeds in areas with inadequate coverage have been branded “unfair” by a parliamentary committee.

The Business Innovation and Skills committee concluded that the broadband tax which could raise up to £175m to introduce faster internet connections would be “regressive” and badly targeted.

The MPs believe the Government should focus on “digital inclusion” – making sure more people have internet connections – rather than next generation high speed access.

The Business Innovation and Skills committee believes a 50p levy would punish many who wouldn’t be able to benefit from the proposal.

It also backed plans to open up the BT tunnel network to other providers encouraging investment in broadband by more providers.

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