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Digital Divide - Calls for VAT cut for low cost broadband

Graham Watson

29th June 2023

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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?

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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.