Ad Bodies Blast BBC’s ‘Excessive’ Licence Request

Advertising bodies ISBA and the IPA have criticised the BBC’s request for an increased licence fee in a submission to the Department for Culture, Media and Sport, claiming that over-funding the Corporation would result in an unfair spending ability.

The BBC made its claim for an increase to the licence fee of RPI + 2.3% last October (see BBC Requests Increased Licence Fee For Digital Britain), stating that the increased funds would enable the move to a fully digital Britain, with more choice in broadcast services available to all, irrespective of age or income.

However, the two trade bodies claim an increase of RPI + 2.3% is disproportionate to the costs of digital switchover. “We acknowledge that Government is seeking the BBC’s support for Digital Switchover, which will have attendant costs,” a statement issued today explains.

“But neither do these span the whole Charter period, nor do we believe they should be ‘rolled in’ to any general settlement. Rather, they should be identified, separated and ring-fenced from any general settlement.”

ISBA and the IPA also claim that, should the increase be approved, the BBC will be able to outspend its commercial competitors, both on broadcast and new media platforms.

According to the trade bodies, the commercial media sector will be “seriously damaged,” by such a move, with the BBC only impacting to a lesser extent if any increase is kept below RPI.

Elsewhere, the submission to the DCMS calls for more encouragement for the BBC to fund its activities through costs savings, with the argument intended to influence the Government’s next Charter Renewal White Paper, due in the coming months.

Earlier this year saw the BBC granted an inflation-busting increase to the licence fee, with secretary of state Tessa Jowell announcing a new cost of £131.50 from 1 April. The move represents an increase of 4.2% on the current price for a colour licence, up £5 in real terms. A black and white licence will cost £44.00 under the new pricing (see BBC To See Increased Licence Fee From April).

BBC: 020 8743 8000 www.bbc.co.uk DCMS: 020 7211 6200 www.dcms.gov.uk IPA: 020 7235 7020 www.ipa.co.uk ISBA: 020 7499 7502 www.isba.org.uk