BBC To Revise Down Licence Fee Bid

The BBC’s director general, Mark Thompson, is likely to unveil a lower figure for the proposed licence fee bid, during a speech in London to outline the Corporation’s final strategy in the drawn-out process.

Earlier this year, the BBC said it needed an above inflation rise in the fee to fund a variety of expenses, including the move of nearly 2,000 staff to Manchester, the expansion of interactive services and to give financial help with digital switchover to vulnerable groups.

Today’s move could set the timetable back on track for a deal by the end of next month. When the deal is finally announced, it is expected the government will confirm that Ofcom is to conduct a wide-ranging review of the way the BBC is funded in five years.

The creative industries minister, Shaun Woodward, has said the government is still negotiating with the BBC over the size of the licence fee settlement. Speaking in Cannes at the Mipcom programming festival, Woodward said the government would not be pressured into making its decision.

“People value the BBC at the right price and we have a duty to safeguard the long-term interests of the BBC. If we come up with the wrong figure, people will lose confidence in their willingness to pay and that is why we have to get it right now,” he said.

Recently, a government commissioned report suggested that the British public was willing to pay more for the licence fee (see British Public Willing To Pay More For BBC Licence Fee) but it emerged in June that the culture secretary Tessa Jowell did not believe the Corporation would get the massive figure that it had suggested (see BBC May Not Get Expected Rise In Licence Fee).

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