Super-fast broadband plan for rural areas

The move could see more people in the countryside encouraged to have consultations with their doctor online rather than travelling miles to their GPs' surgery, as well as allowing more to work from home.

The Government plans to impose a 6-a-year charge on every landline in the country to create a 1bn fund to finance the roll-out of super-fast connections where it would not be commercially viable.

But last night the Tories branded the charge "damaging and misguided" amid warnings it could cost small and medium businesses up to 1,500 a year – and even risk deterring private investment.

Business Secretary Lord Mandelson launched a consultation yesterday into how the Next Generation Fund should be used.

"This investment is about bringing the future of broadband to areas of the country that would otherwise miss out," he said. "We cannot underestimate the opportunities this will bring for homes and businesses which is why we are taking action to make sure everyone benefits.

"Already the market is delivering superfast internet speeds of 50Mbps to half the country but we cannot be certain that it will reach the communities that are not currently served, which is why we are putting in an extra 1bn to support the market."

The Government has admitted, however, the charge will cost businesses about 70m a year and said the duty may have "a significant financial impact" on some firms.

Shadow Culture Secretary Jeremy Hunt said: "I can't believe the Government is pressing ahead with such a damaging and misguided tax. Not only do they admit that it could have a negative impact on broadband roll out but they also reveal that it could damage UK businesses in the middle of the worst recession since the 1930s. The fact that SMEs will be forced to pay up to 1,500 each is staggering."