[bbc] Chancellor George Osborne has confirmed that the 50p a month landline tax ear-marked for next-generation broadband will be scrapped.
Instead the government will leave the majority of super-fast broadband roll-out to private investment.
Some money will be available for rural roll-outs, he said.
The Conservatives opposed the introduction of the broadband tax and it was dropped from the Finance Bill at the end of the last parliament.
Speaking about the decision to scrap the tax, he said: "I am happy to be able to abolish this new duty before it is even introduced. Instead, we will support private broadband investment, including to rural areas, in part with funding from the Digital Switchover under-spend within the TV Licence Fee."
Government drops broadband tax