Will the next generation levy happen?
22 November 2009
Earlier this week, I attended the latest and largest event on next generation access organised by the Community Broadband Network. This was a one and a half day conference at the Royal Armories.
The event was addressed by both Opposition spokesperson Ed Vaizey and Government Minister Stephen Timms. I asked each about the proposal in the Digital Britain Final Report that there be a next generation levy, that is 50 p per month per fixed line to help fund the roll-out of next generation access to the so-called final third of the country.
Ed Vaizey was totally opposed to the proposal which he called "this evil Labour tax". He said that it was "an analogue solution to a digital problem". He was concerned that much of a next generation fund would be swallowed up by administrative and consultants' costs and that in any event the sums raised by the levy would be inadequate but, above all, he did not favour "a top-down approach".
By contrast, Stephen Timms argued that the levy was necessary if NGA was to reach most parts of the country and he was determined to see the measure in the Finance Bill. He acknowledged that there is a political convention that, if a General Election is called before a Finance Bill has reached the Statute Book, then the controversial parts are dropped and a short uncontroversial Bill is passed. In that context and referring to the prospect of the levy staying in the Bill, he admitted that "There is scope for the Opposition to make that difficult". He insisted "I want it in the Bill" but conceded "I cannot give you a cast-iron guarantee".
You can hear the full record of my question to the Minister and his response by clicking here and scrolling down to "Stephen Timms MP answers questions at NextGen09 (1)".