State aid to BT claims under investigation

The Government is under scrutiny by European competition authorities over allegations that it provided illegal state aid to BT via the business rates regime.

The claims come amid plans to boost investment in Britain’s broadband infrastructure with new tax breaks for fibre-optic upgrades. In a letter seen by The Daily Telegraph, European Commission competition officials have called on the Government to defend its tax treatment of BT’S telecoms infrastructure. Business, page 1