TV licence fee 'could be cut'

[Perdita]

The television licence fee could be cut under the government's public spending austerity drive, Culture Secretary Jeremy Hunt has said.

In an interview with the Daily Telegraph, Mr Hunt attacked the BBC's "extraordinary and outrageous" waste.

He said he could "absolutely" see viewers paying less than the current £145.50 after next year's negotiations between the BBC and the government.

The BBC recently announced plans to cut its top managers' pay bill.

The aim is to reduce their pay by a quarter over 18 months.

The BBC Trust, which represents licence fee payers and governs the BBC, said that it was operating in a period of "severe austerity".

Jeremy Hunt said the BBC needed to recognise the "very constrained financial situation" the country is in.

He told the Telegraph the possibility of a reduction in the licence fee was a "discussion that we need to have".

'Tough decisions'

The culture secretary said: "The BBC should not interpret the fact that we haven't said anything about the way licence fee funds are used as an indication that we are happy about it. We will be having very tough discussions."

The Telegraph reported that a lower levy could be in place for 2012 following next year's review process.

The culture secretary said the BBC "will have to make tough decisions like everyone else".

"There are huge numbers of things that need to be changed at the BBC. They need to demonstrate the very constrained financial situation we are now in," he said.

But shadow culture secretary Ben Bradshaw said: "It's sensible for the level of the licence fee to reflect economic conditions and people's incomes and for the BBC to strive for better value for money.

"But this feels like part of a broader anti-BBC agenda.

"Most people value the BBC and Britain's tradition of public service broadcasting and would not favour damaging or destroying the BBC."

A Department of Culture spokesman said "no decisions about the level of the licence fee" would be taken ahead of the review process.

"Like all other public organisations, ministers expect the BBC to demonstrate that they are operating efficiently and giving value for money," he added.

Mr Hunt also revealed plans for the National Audit Office to examine the BBC's books.

Recent figures showed that BBC Director General Mark Thompson and the Executive Board's total pay packet had increased.

'The message'

Total remuneration for the BBC Executive board rose in 2009-10 to £4.769m from £4.601m in 2008/09.

And, overall, the number of BBC staff increased from 17,078 to 17,238.

But BBC media correspondent Torin Douglas said the BBC already "seems to have got the message" being spelt out by the culture secretary.

"In recent weeks, it's proposed a substantial reduction in pensions for many staff, agreed to cut its top managers' pay bill by a quarter over 18 months, and said it will publish the names of its highest-earning stars," he said.

Sir Michael Lyons, who chairs the BBC Trust, has outlined plans to cut pay, calling for greater transparency and saying every pound the BBC takes from licence fee-payers must be shown to have been spent well.

In a statement, the BBC Trust said: "The context in which the BBC is now operating is one of severe economic austerity.

"We have said that when we come to the next licence fee negotiations the trust will enter those talks representing licence fee payers' interests alone, and that we will seek only what is necessary for the BBC to fulfil its public purposes.

"The trust remains focused on the need to secure maximum value for money for licence fee payers."


BBC news

[StarsOfCCTV]

Maybe it will make the BBC be more economical with their money e.g. not spending so many millions on personalities? I'm sure they can take a little pay cut.

[alan45]

The Telly Tax should be scrapped altogether. Why should the Biased Broadcasting Corporation receive government funding.

They should be run as a commercial outfit like all the rest

[Siobhan]

The Telly Tax should be scrapped altogether. Why should the Biased Broadcasting Corporation receive government funding.

They should be run as a commercial outfit like all the rest

Alan, as you probably know, we have 4 TV channels in the Republic, all commerical run, and yet our TV licence bill is 160 euro a year!!

[Perdita]

The BBC Trust has proposed to the government that the licence fee should be frozen until 2013, in a move that could cost the corporation more than £140 million.

Today, the BBC's governing body announced that the licence fee should be held at its current level of £145.50 for the remaining years of the settlement, through to March 2013.

Under the current multi-year settlement, the BBC is entitled to an up to 2% increase in the licence fee over the next two financial years.

However, the Trust believes that the "exceptionally tough financial climate" facing licence fee payers effectively rules out an increase.

The Trust's move would mean taking an estimated £144m out of the already-planned BBC budgets for 2011/12 and 2012/13.

BBC management has already made it clear that the loss of funds would require some "on-air changes, particularly at a time of continuing capital spend on infrastructure projects and digital switchover".

However, the Trust has said that the "exceptional pressures" on licence fee payers requires the corporation to make the necessary savings, "while keeping any on-air impact within acceptable limits".

Sir Michael Lyons, the outgoing BBC Trust chairman, said: "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 3% 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."

The Trust also confirmed that a pan-BBC review is currently underway on what long-term efficiencies can be made after 2013.

The organisation said that it has asked the National Audit Office for assistance in the review, as it prepares for talks with the government in 2011 on the next licence fee settlement.

[alan45]

Alan, as you probably know, we have 4 TV channels in the Republic, all commerical run, and yet our TV licence bill is 160 euro a year!!
Are RTE 1 and 2 not State Run in the same way as the BBC

[Siobhan]

Are RTE 1 and 2 not State Run in the same way as the BBC

Yes but still have advertisments which could help reduce the fees.. it is stupid to pay that much for TV licence and I barely watch any of the Irish channels..

[Perdita]

Television licence fee to be frozen for next six years

The licence fee generates around £3.5bn a year

The television licence fee, which funds the BBC, is to be frozen for the next six years at £145.50, it has emerged.

The BBC will also take over the cost of the World Service, currently funded by the Foreign Office, as well as the Welsh language TV channel, S4C.

There had been a proposal to make the BBC pay the cost of free TV licences for the over-75s, but it is understood this will now not happen.

A formal announcement will be made on Wednesday during the Spending Review.

The BBC is refusing to comment, but insiders say that this is a significantly better settlement than the proposal to force it to pay the cost of free TV licences.

It will mean a 16% real terms cut in the BBC's funds over the next six years as opposed to a 25% cut over four years if they had been obliged to cover the licence fee costs.

Ministers are expected to present the freeze as "reining in" the corporation's costs, but Gerry Morrissey, general secretary of broadcasting union Bectu, said he was "alarmed ".

"It seems as if the BBC is now doing the government's dirty work. They have thrown in the towel, so they will now have to justify the cuts to staff," he said.

The BBC hopes it has short-circuited a long and potentially painful debate about cutting it down to size and now has the certainty to plan for the future”

"How can you cut 16% off your costs without affecting jobs or services? Morale at the BBC is already at rock bottom, but now there is little or no confidence in the management."

The BBC has been embroiled in a row with staff and unions over changes to its pensions provision, and last week it announced that the post of deputy director-general was being axed to cut costs.

The BBC Trust earlier warned the government it would fight any move to force the corporation to meet the cost of free television licences for the over-75s.

A trust spokeswoman said it would be "unacceptable" for licence fee payers to foot the bill.

Last month, Foreign Secretary William Hague told MPs the World Service was of "huge importance" but could not expect to be immune from cost-cutting.

"Can the BBC World Service make itself more efficient and therefore contribute to the spending round? Yes, I think it can and it thinks it can," Mr Hague told the Commons Foreign Affairs Committee.

But shadow foreign secretary Yvette Cooper said she was concerned about the announcement.

"It is alarming that only 24 hours before the spending review, the funding of the World Service has been completely up in the air," she said.

"Although editorially independent, the World Service is a key component of UK diplomacy and does important work promoting British values and open debate across the world.

"Jettisoning it from the Foreign Office at this late stage, without serious consultation or a strategy for its future, is cavalier and short-termist."

The Department for Culture, Media and Sport currently funds S4C to the tune of just under £100m a year.

Along with the channel, the BBC will also take over the cost of BBC Monitoring, which monitors, translates and analyses media coverage from around the world.

BBC News

[alan45]

Im delighted to hear that the Beeb has 'decided' to freeze the telly tax.

Now is the time for them to cut the huge salaries they pay out. Paying soap stars and interviewers hundreds of thousands of pounds is absolutely disgusting. They should set a cap on salaries.