State accused of BT favouritism

Vtesse Networks, a corporate communications provider in the City of London, has lodged a complaint with the European Commission claiming that BT is paying artificially low business rates, saving it millions of pounds per year and possibly as much as GBP12.5 billion since 1995. Aidan Paul, CEO of Vtesse, claims that there is a huge difference between the way BT is taxed and the way newcomers are assessed. Last year BT paid GBP250 million in rates on its telecoms network, which Mr Paul believes would rise to GBP1.39 billion if it paid on the same basis as its rivals. The allegations could now become the subject of an EU investigation if the Brussels administration is not satisfied with the UK government’s response to its inquiries. According to BT is has not yet received notification from the European Commission nor the UK government regarding an investigation, but added that it will cooperate fully with any inquiry.