A new tax on broadband use could be made law before the next election, according to Minister for Digital Britain Stephen Timms.

It would apply to everyone with a fixed line telephone and could raise up to £175 million a year.

Speaking at a debate in London, Mr Timms said the tax will be presented to parliament as part of the Finance Bill.

He said: "We want to make high speed networks nationally available. The next-generation fund will help that and we will legislate for it this side of a general election."

Tory MP John Whittingdale says the Conservatives would not be in favour, saying: "I object to it on the basis that it is another tax and is aimed at people who are using old technology."

It is though the plan would mean people with a home phone line paying a £6 annual fee even if they are not connected to the internet.

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