The £2 broadband tax echoes Canada's 30¢ tax to save music

"Boy, hurting that new industry to save this dying one; that definitely won't backfire!" - Nobody, ever.

Remember when Canada introduced a compulsory levy on blank CDs to save the recorded music market, and how that totally made everything OK? Oh, you don't? 

Canada is one of a few countries which enacted what's known as a "private copying levy". Any "blank audio recording media", such as cassettes, CD-Rs, or MiniDiscs, is subject to a tax – of $0.29 per unit for CD-Rs, and $0.24 per unit for cassettes.

In a way, it's very similar to David Leigh's proposal to save journalism. Charge a levy on the new technology which is eating the old, and save the "valuable" incumbent at the expense of the upstart new entrant. In fact, it's better than Leigh's proposal; most audio recording media does have music on it, whereas very little internet bandwidth is used for news (if we were being fair about where the money goes, most of that £2 would subsidise porn – which is also suffering under the yoke of the internet).

So how did the levy do? It saved the Canadian recording industry, right? Not so much:

Source

The money taken from downloads is actually on the up in Canada, as with everywhere else; and eventually, the industry will recalibrate around this new funding source. But to pretend that state funding – particularly state funding based on a tax of an unrelated resource – can save the industry is sadly wishful thinking.

Newspapers pile up on the street floor. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Photo: Getty
Show Hide image

Ignored by the media, the Liberal Democrats are experiencing a revival

The crushed Liberals are doing particularly well in areas that voted Conservative in 2015 - and Remain in 2016. 

The Liberal Democrats had another good night last night, making big gains in by-elections. They won Adeyfield West, a seat they have never held in Dacorum, with a massive swing. They were up by close to the 20 points in the Derby seat of Allestree, beating Labour into second place. And they won a seat in the Cotswolds, which borders the vacant seat of Witney.

It’s worth noting that they also went backwards in a safe Labour ward in Blackpool and a safe Conservative seat in Northamptonshire.  But the overall pattern is clear, and it’s not merely confined to last night: the Liberal Democrats are enjoying a mini-revival, particularly in the south-east.

Of course, it doesn’t appear to be making itself felt in the Liberal Democrats’ poll share. “After Corbyn's election,” my colleague George tweeted recently, “Some predicted Lib Dems would rise like Lazarus. But poll ratings still stuck at 8 per cent.” Prior to the local elections, I was pessimistic that the so-called Liberal Democrat fightback could make itself felt at a national contest, when the party would have to fight on multiple fronts.

But the local elections – the first time since 1968 when every part of the mainland United Kingdom has had a vote on outside of a general election – proved that completely wrong. They  picked up 30 seats across England, though they had something of a nightmare in Stockport, and were reduced to just one seat in the Welsh Assembly. Their woes continued in Scotland, however, where they slipped to fifth place. They were even back to the third place had those votes been replicated on a national scale.

Polling has always been somewhat unkind to the Liberal Democrats outside of election campaigns, as the party has a low profile, particularly now it has just eight MPs. What appears to be happening at local by-elections and my expectation may be repeated at a general election is that when voters are presented with the option of a Liberal Democrat at the ballot box they find the idea surprisingly appealing.

Added to that, the Liberal Democrats’ happiest hunting grounds are clearly affluent, Conservative-leaning areas that voted for Remain in the referendum. All of which makes their hopes of a good second place in Witney – and a good night in the 2017 county councils – look rather less farfetched than you might expect. 

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.