BBC Set For Defeat Over Increased Licence Fee

Reports this morning suggest the BBC faces defeat over its bid for an increased licence fee, with the Financial Times giving over its front page to claims the Corporation is being “unrealistic” in its request.

This afternoon will see the Government publish a white paper on the future of the BBC, delivering a ruling on its desire to increase the licence fee by RPI + 2.3%, revealed last October (see BBC Requests Increased Licence Fee For Digital Britain).

However, the FT claims the BBC is “not getting” its increase, going on to state that culture secretary Tessa Jowell has given the Corporation’s management a “flea in their ear” over the claim.

The increased licence fee is needed to fund the switch to totally digital broadcasting, according to the BBC, which is expected to bear the brunt of digital switchover costs.

However, last week saw advertising bodies ISBA and the IPA criticising the BBC’s request, claiming that over-funding the Corporation would result in an unfair spending ability (see Ad Bodies Blast BBC’s ‘Excessive’ Licence Request).

The trade bodies also stated that the costs of switchover should not be “‘rolled in’ to any general settlement. Rather, they should be identified, separated and ring-fenced.”

ISBA and the IPA’s lobbying is likely to form much of the “widespread criticism” reported by the FT this morning, which also questioned the “public acceptability” of the proposed increase.

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