I see it now
Government claims to be building a "thriving digital economy" and uses said argument to shift public services to the web.
Government builds system whereby web services can negotiate agreements with ISPs to allow access, presumably with a fee or reciprocal arrangement involved, probably along the lines of "implement this government approved blacklist".
Government tells citizens that if they want to access any public services whatsoever they need to use an ISP on their approved list of Phorm-subscribing overpriced "unlimited*" ISPs.
I'm only as paranoid as Jacqui wants me to be