The introduction of a new broadband tax in the UK would be good value for homes and businesses, the government's Digital Britain Minister has suggested.

Stephen Timms told the National Digital Inclusion 2010 conference that the 50p-a-month rate, which would fund the rollout of fibre-optic broadband across the country by 2017, will prove cost-effective, reports V3.co.uk.

"The cost of the landline duty is minimal in relation to the benefits it will provide for business. It is important that we get on with overseeing the development of next-generation services," he explained.

He added that the tax would be particularly positive for businesses in rural areas, as they would get access to the same quality high-speed broadband available in urban locations.

Mr Timms' comments have come after the government launched a new body which will responsible for managing the funding generated from the broadband tax.

Broadband Delivery UK will also manage the rollout of 2Mb broadband across the UK by 2012.