BT says 'government-inflicted' costs are 10 times higher in UK than Europe

By Paul Sandle

LONDON (Reuters) -The boss of BT said the burden of "government inflicted" taxes and compliance was 10 times higher in Britain than in Europe, as she warned that uncertainty about any further increase would deter the investment the country needed.

Chief Executive Allison Kirkby said BT and the wider telecoms sector could be a catalyst for economic growth but investors needed certainty that they could make a return. 

"We've invested 25 billion pounds, the majority of that into what is Europe's largest, fastest, highest quality fibre footprint," she said at the Connected Britain conference on Wednesday.

"If it's truly adopted by citizens, businesses and enterprises, it can fuel real growth."

The business and trade department did not immediately respond to a Reuters request for comment on Kirkby's comments, which came after U.S. drugmaker Eli Lilly boss Dave Ricks labelled Britain as "probably the worst country in Europe" for drug prices. 

PEAK GOVERNMENT-INFLICTED COSTS

BT's Openreach networks arm said on Wednesday its fibre roll-out had reached the milestone figure of 20 million homes, with take-up running at 38%.

Ahead of what she said would be a "very difficult" budget in November, Kirkby said BT had looked at the government-inflicted costs it was paying.

"We pay in business rates, energy levies, and other costs associated with regulation and compliance 10 times the amount our peers pay in countries like Germany and the Netherlands," she said.

"So we're already at peak government-inflicted costs."

She said BT could be a showcase for the investment Britain needed in water, energy, transport and other infrastructure.

"What do investors need? They need certainty that they are going to get a return on that investment and they get that certainty through stability on regulatory and fiscal policy," she said.

(Reporting by Paul Sandle; Additional reporting by Muvija M; Editing by Kirsten Donovan)