{"id":45482,"date":"2026-04-16T10:31:02","date_gmt":"2026-04-16T09:31:02","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=45482"},"modified":"2026-04-16T11:35:53","modified_gmt":"2026-04-16T10:35:53","slug":"full-fibre-uk-broadband-networks-face-sharp-fibre-tax-hike-on-network-bills","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2026\/04\/full-fibre-uk-broadband-networks-face-sharp-fibre-tax-hike-on-network-bills.html","title":{"rendered":"Full Fibre UK Broadband Networks Face Sharp Fibre Tax Hike on Network Bills"},"content":{"rendered":"<p>The Government\u2019s <a href=\"http:\/\/www.voa.gov.uk\/\" target=\"_blank\" rel=\"noopener\">Valuation Office<\/a> (VO), which has just become part of HMRC, appears to have begun hitting builders of fibre optic broadband networks with an increase in the rateable value (RV) of their fibre infrastructure (aka &#8211; Fibre Tax), which in some cases has hiked costs by up to around 30%. Not ideal given the well known strains in the sector right now.<!--more--><\/p>\n<p>Complaints against the <strong>business rates<\/strong> system for new fibre networks are of course nothing new, and it doesn&#8217;t help that a lot of the VO&#8217;s online documentation hasn&#8217;t yet been updated to reflect the latest <strong>1st April 2026<\/strong> change. For example, the VO&#8217;s Rating Manual for telecommunications fixed line networks (<a href=\"https:\/\/www.gov.uk\/guidance\/rating-manual-section-6-part-3-valuation-of-all-property-classes\/telecommunications-fixed-line-networks\">here<\/a>) doesn&#8217;t seem to have been replaced, which means that some network operators may be surprised by the latest increase.<\/p>\n<div class=\"bq2\"><strong>NOTE:<\/strong> In the past a number of smaller alternative fibre networks have claimed that the VO\u2019s \u201c<em>Fibre Tax<\/em>\u201d treated them unfairly (i.e. forcing them to pay more for their cable deployments than bigger fixed line providers). But VOA\u2019s approach to setting the fibre tax has gone through a lot of changes in recent years, so today\u2019s situation is not quite the same as it once was.<\/div>\n<p>Despite the lack of up-to-date information, the VO has still implemented the UK&#8217;s <a href=\"https:\/\/www.gov.uk\/government\/statistics\/non-domestic-rating-change-in-rateable-value-of-rating-lists-england-and-wales-2026-revaluation-draft-list\/non-domestic-rating-reval-2026-draft-list-and-background-information\" target=\"_blank\" rel=\"noopener\">2026 business rates revaluation<\/a> (revaluations are carried out every 3 years by the VO), which is based on 2024 market conditions and re-assessed rateable values (RVs) across all non-domestic property \u2014 including some fixed telecoms infrastructure. The catch is that the VO doesn&#8217;t apply this as a simplistic uniform government-imposed % rise and instead adopts more of a case-by-case valuation that will vary.<\/p>\n<p>On top of that there are some <strong>transitional relief caps<\/strong>, which for example means that for larger properties (RV \u00a3100k+) the annual bill increases are capped at 30% in 2026\/27. This helps to explain why some network operators may suddenly be seeing increases of around 30% in their Fibre Tax, but crucially this will vary between operators (it will be less for others and some may be lucky and see no changes).<\/p>\n<p>Nevertheless, an up to 30% increase is still going to have a significant impact on some players, and you can see a few location specific examples of how some networks may be impacted <a href=\"https:\/\/www.tax.service.gov.uk\/business-rates-find\/valuations\/start\/5533903000\" target=\"_blank\" rel=\"noopener\">here<\/a>, <a href=\"https:\/\/www.tax.service.gov.uk\/business-rates-find\/valuations\/start\/15074935000\" target=\"_blank\" rel=\"noopener\">here<\/a> and <a href=\"https:\/\/www.tax.service.gov.uk\/business-rates-find\/valuations\/start\/13653405000\" target=\"_blank\" rel=\"noopener\">here<\/a>. The listed rises reflect a mix of more modest c.10% increases and go up to around c.30%.<\/p>\n<p>All of this comes at a time when the operators building new fibre optic broadband networks are already being heavily impacted by an increasingly competitive environment and rising costs (high build costs, high interest rates etc.). The situation has resulted in plenty of job cuts and a greater focus on commercialisation instead of new fibre build (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2024\/11\/london-full-fibre-broadband-isp-g-network-cuts-jobs-and-shifts-strategy.html\">here<\/a>), while others have been forced to consolidate and a few have even taken haircuts as lenders take control (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2026\/04\/lenders-take-control-of-rural-uk-full-fibre-broadband-isp-gigaclear.html\">here<\/a>), or gone through administration to reduce debts (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2026\/03\/london-full-fibre-broadband-provider-g-network-moves-forward-debt-free.html\">here<\/a>).<\/p>\n<p>Suffice to say that the last thing many fibre optic network builders need right now is yet another significant cost increase, but that seems to be precisely what many will have to contend with, which is before we even consider the long-tail impacts of current events in the Middle East (cost of fuel, supply shortages in other areas etc.). ISPreview did ask HM Treasury to comment, but has yet to receive a response.<\/p>\n<p>Finally, it&#8217;s possible that increases like this could eventually make their way on to consumer bills via future price rises, although it&#8217;s a little more difficult to assess that without first taking a wider view of the overall cost impact by each operator (requires access to data we don&#8217;t have).<\/p>\n<p>NOTE:&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Government\u2019s Valuation Office (VO), which has just become part of HMRC, appears to have begun hitting builders of fibre optic broadband networks with an increase in the rateable value (RV) of their fibre infrastructure (aka &#8211; Fibre Tax), which in some cases has hiked costs by up to around 30%. Not ideal given the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":45485,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[472,52,56,38],"class_list":["post-45482","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-business","tag-fibre-optic","tag-fttp","tag-politics"],"share_on_mastodon":{"url":"https:\/\/mastodon.social\/@ispreview\/116413691660896317","error":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Full Fibre UK Broadband Networks Face Sharp Fibre Tax Hike on Network Bills - ISPreview UK<\/title>\n<meta name=\"description\" content=\"The Government\u2019s Valuation Office (VO), which has just become part of HMRC, appears to have begun hitting builders of fibre optic broadband networks with\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2026\/04\/full-fibre-uk-broadband-networks-face-sharp-fibre-tax-hike-on-network-bills.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Full Fibre UK Broadband Networks Face Sharp Fibre Tax Hike on Network Bills - 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