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Vodafone, O2, Orange and Tiscali customers are to benefit from cheaper broadband, as more ISPs pass on the VAT cut.

More UK internet service providers (ISPs) have confirmed they are to cut prices in line with the VAT reduction – a development that was widely predicted by industry experts.

On Friday both BT and PlusNet confirmed they are to pass on the recent 2.5 per cent drop in VAT to customers in the form of cheaper tariffs. Now, the reduction has been matched by the firms’ rivals in the UK market.

Both Vodafone and Tiscali are passing on their reductions from today, but are still advertising the previous price plans on their websites. Meanwhile, Orange and O2 have pledged to cut prices but have yet to specify a date for the new plans to be introduced.

Perhaps most surprising, however, is the news that Be has stolen on a march on its larger rivals by announcing price cuts above and beyond the reduction. The announcement cuts the cost of its Be value, Be unlimited and Be pro offers by 50p per month.

The ISPs’ announcements leaves Virgin Media and Sky as the only major UK broadband providers yet to confirm a cut. However, having recently amended its pricing plans to simplify them for customers, Sky deemed less likely to act. This has fuelled speculation that the company could be planning to allocate the savings to improving service levels.

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