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Digital Divide - Calls for VAT cut for low cost broadband

Graham Watson

29th June 2023

This is an inequality issue - with a House of Lords Committee suggesting that digital exclusion is a major problem and that the government should try to do something to close this gap, not least because 90% of jobs are now only advertised online.

The policy that the recommend is in cutting VAT on low-cost broadband, and in trying to encourage those eligible for so-called social tariffs to use them. According to the article only 5% of the 4.3 million people eligible use them.

The number of households with no broadband or mobile internet access in 2021 was 1.7 million.

The number of adults unable to complete a single basic task to get online, such as opening an internet browser or using a mouse is 2.4 million.

Of course, such a move would also enhance the nation's productive capacity too, boosting the supply-side.

Please read:

The digital divide is deepening - How do we tackle digital exclusion in the UK?

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

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