Google could be be hit with an online advertising tax to boost the coffers of the BBC, under proposals being discussed by the Government. Ministers are considering taxing search engines, download websites and broadband providers to fund public service TV and the roll-out of broadband. It could mean tax bills of more than £ 100million, which in turn may force firms to start charging for emailing, internet searches and social networking, which are used by millions of Britons every day.
Conservative MP Philip Davies, who sits on the Commons culture, media and sport select committees, criticised the proposals, saying the money to fund the future of 'Digital Britain' was lying unused in the BBC's coffers.
'They are looking at everything apart from the thing which is shooting them in the eye, which is the BBC,' he said. 'There's piles of money sat glaring them in the eye. But they are trying everything to avoid doing the most obvious thing of all.'
Chancellor Alistair Darling has already outlined plans in his budget which give the broadband industry money from the BBC's underspend on digital switchover. An estimated £250million which it is unlikely to have spent by 2012 will go towards installing universal broadband. But ministers are discussing options to raise more cash from successful internet companies.