BBC announce freeze on TV Licence cost

The BBC Trust has announced today its proposals to freeze the current licence fee cost until 2013, which would mean £144million taken out of planned BBC budgets.

 

The current cost of a TV Licence is £145.50 for which the BBC hopes it can freeze until 2013. Under current terms the BBC is entitled to a 2% increase for 2011/2012 and the amount for 2012/2013 being determined between 0% – 2% but the agreement must ensure the Trust keeps the BBC’s financial needs under review, ensuring that the executive board do not spend more money than is needed to ensure the BBC meets its responsibilities.

The Trust is under pressure to make savings without compromising the BBC’s quality and reputation in the UK and around the world. The BBC now have to make adequate cuts to accommodate the proposed non-rise of the licence fee after pressure from the government. The figure given by the BBC today, a loss off £144million due to the non-rise, “require some on-air changes, particularly at a time of continuing capital spend on infrastructure projects and digital switchover”.

Sir Michael Lyons, the BBC Trust chairman said today

“The Trust remains committed to the principle of ring-fenced multi-year licence fee settlements. It is a key part of the BBC’s independence that the Government grants such settlements and does not re-open them before they come to an end.

However, we also recognise that the British public is facing an exceptionally tough financial climate. In June, as part of the Trust’s role in ensuring value for money at the BBC, we asked the Executive to see if they could make further savings on top of the existing three per cent year-on-year efficiencies, so that the BBC does not ask licence fee payers to pay any more than they need to for BBC services.

A freeze in income will not be pain-free, and this decision was not taken lightly. But the Trust is satisfied that the BBC can manage the impact while continuing to deliver the range of programmes and services that the public loves.”