Tory Report Calls For Reduction Of BBC Licence Fee
The BBC licence fee should be reduced and commercial broadcasters allowed to bid for funding to make public service programmes, according to a report commissioned by the Conservative party.
The wide-ranging review, which is being spearheaded by former Five chief executive, David Elstein, is backing proposals for the creation of a new public service fund that will be supported by taxation.
The controversial plan would see the introduction of a special ‘spectrum tax’ that could be accessed by commercial broadcasters such as ITV, Channel 4 and Five and independent production companies like Endemol, Hatrick and RDF.
A report in the Business suggests that Elstein’s panel is also likely to recommend the privatisation of certain non-core aspects of the BBC, including its commercial arm. However, it has rejected plans for the Corporation’s board of governors to be brought under the control of Ofcom.
The panel has also ruled out a controversial plan that would have seen a portion of the BBC’s annual £2.6 billion licence fee diverted to other broadcasters. It is understood that Elstein believes the idea is not viable because of a lack of accountability (see Granada Chairman Calls For Slice Of BBC Licence Fee).
The committee’s report is separate from the Government’s ongoing review of the BBC and may not be accepted as policy by the Conservatives, which recently refused to sit on cross-party panel overseeing the appointment of a new BBC chairman.
However, it comes as a crucial time for the Corporation, which has been plunged into crisis following the findings of Lord’s Hutton report. Both director Greg Dyke and chairman Gavyn Davies stepped down in the wake of the report, which found the BBC defective in its handling of events surrounding the death of Dr David Kelly (see Dyke’s Departure Casts Doubt Over Future Role Of BBC).
Last week leaked Government papers drafted by senior civil servants proposed breaking up the BBC and dividing into four regional divisions for England, Wales, Scotland and Northern Ireland, in a move that would bring an end to the Corporation as a national organisation (see Government To Consider BBC Break-Up In Charter Review).
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