BBC licence fee will pay for broadband

THE COALITION CABINET OFFICE said it will use public revenue from the BBC's licence fee to pay for broadband.

In a 36-page "programme for government" report, the Government outlined its first official coalition plan.

Binning Labour's 50 pence broadband tax idea, the coalition revealed it will pump the BBC for cash instead, saying, "If necessary, we will consider using the part of the TV licence fee that is supporting the digital switchover to fund broadband in areas that the market alone will not reach."

The coalition also wants to "ensure that BT and other infrastructure providers allow the use of their assets to deliver such broadband, and we will seek to introduce superfast broadband."

The BBC was then put in the bizarre position of having to quote itself to confirm the coalition's intentions. It said, "We note the reference to the possible use of an element of the licence fee on broadband roll out."

"We look forward to discussing this with the Government," one BBC department told another.

The coalition has confirmed that the new Minister of Broadband will be Ed Vaizey, MP he will oversee the implementation of the Government's digital economy plans.