The government is proposing to levy a tax of £6 a year on all telephone lines, to pay for the expansion of high-speed broadband services to give nation-wide coverage. This is an excellent example of the government’s lack of understanding of economic principles.

High speed broadband is a good thing, but not everyone wants it, needs it, or is even capable of using it. If people want it they will pay for it. There are many alternative methods of delivering the service, through wireless, copper cable or fibre optic systems, or combinations of all three. There are many national providers of utility networks who could achieve this in various ways, although it has to be said that they have failed to take the opportunity to do so as part of the general renewal of infrastructure that has turned so many of Britain’s city streets into building sites in recent years.