BBC May Not Get Expected Rise In Licence Fee

The BBC may not get the full over-inflated rise in the licence fee that it is claiming, culture secretary Tessa Jowell has said.

Jowell has indicated that high wages could be a key factor in this, saying she would look into the BBC’s wage costs as she assesses the level at which the licence fee should be set from next year.

Describing projected wage costs as “very high”, the culture secretary told the Financial Times she was also taking into account the “somewhat sceptical” report by accountants PKF, which cast doubt on the BBC’s sums.

Jowell’s comments come after broadcasters from the commercial television and radio industries sent a joint letter to the secretary of state for culture, media and sport, outlining their collective grievances about the bid (see Commercial Broadcasters Take BBC Licence Row To The Top).

The BBC says it faces additional costs of £5.5 billion between 2007 and 2014, which will be offset by £3.9 billion in efficiency savings. To plug the resulting gap and to fund other industry costs, the Corporation is asking for a rise in the licence fee of 2.3% above inflation.

Last week, chairman of the House of Lords BBC Charter Review Committee, Lord Fowler, criticised the way the BBC’s licence fee bid is scrutinised, calling for parliament to have a much greater role in examining both the BBC Charter and the bid for an increased licence fee (see Parliament Must Have More Input Into BBC Licence Bid).

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