Tradition Secretary Nadine Dorries at the moment confirmed the BBC licence price can be frozen at £159 for the subsequent two years as she additionally introduced a overview into the long-term way forward for the annual levy.
Ms Dorries instructed MPs that the licence price will stay fastened till April 2024 when it can then rise consistent with inflation for the next 4 years, as much as the top of the present Royal Constitution on December 31, 2027.
She mentioned the broadcaster had been pushing for rises consistent with inflation yearly which might have seen the price enhance to greater than £180 by 2027.
However she mentioned the ‘world value of dwelling is rising’ and the Authorities doesn’t imagine it will be justified to hit households within the pocket within the subsequent two years.
In the meantime, Ms Dorries mentioned ‘it is usually time to look additional into the long run’ as she introduced a overview into the best way the BBC is funded.
She mentioned: ‘It’s time to start asking these actually critical questions on the long run funding mannequin of the BBC and whether or not a compulsory licence price with legal penalties for particular person households continues to be applicable.’
The Tradition Secretary has beforehand signalled that she is in favour of scrapping the licence price after 2027.
The Authorities’s resolution on the licence price is a part of Boris Johnson’s coverage blitz dubbed ‘Operation Pink Meat’, which goals to rebuild help amongst Tory MPs and voters after the Partygate row.
The Authorities introduced in a single day that the Armed Forces can be introduced in to deal with the migrant Channel crossings disaster.
Additional crowd-pleasing coverage bulletins are deliberate for the subsequent two weeks because the Authorities launches a push to rescue Mr Johnson’s premiership.
The licence price announcement got here after a former BBC chairman warned the £159 cost was ‘an excessive amount of cash’ as he recommended BBC2 and BBC4 may very well be abolished to chop prices.
Lord Grade, who was additionally CEO of Channel 4 and chair of ITV, mentioned the sum ‘will not be rather a lot for Gary Lineker’ however it’s for unusual Britons, as he referred to as the annual, common levy ‘a regressive tax’.
BBC bosses have pledged to ‘proceed to make a robust case to the Authorities for investing’ within the company.
In a message despatched to workers at the moment, director-general Tim Davie and chairman Richard Sharp mentioned they ‘welcomed’ debate and ‘stay up for partaking in a dialogue about public service broadcasting within the UK and the way greatest to fund it’.
Tradition Secretary Nadine Dorries at the moment confirmed the BBC licence price can be frozen at £159 for the subsequent two years as she additionally introduced a overview into the long-term way forward for the annual levy
Director-general Tim Davie (pictured) and chairman Richard Sharp mentioned in a message to workers that they ‘welcomed’ debate and ‘stay up for partaking in a dialogue about public service broadcasting within the UK and the way greatest to fund it’
The licence price at present earns the company £3.2 billion a 12 months. Ms Dorries is freezing the levy for 2 years
Delivering a press release on the BBC’s funding settlement within the Home of Commons this afternoon, Ms Dorries mentioned the broadcaster is a ‘nice establishment’ and it has a ‘distinctive place in our cultural heritage’.
‘Nonetheless, in reaching the settlement I needed to be sensible in regards to the financial state of affairs going through households up and down the nation,’ she mentioned.
‘The worldwide value of dwelling is rising and this Authorities is dedicated to supporting households as a lot as potential throughout these troublesome instances.
‘Provided that local weather we needed to suppose very rigorously about imposing a possible enhance on the TV licence, significantly on condition that any enhance would expose households to the potential menace of bailiffs knocking on their door or legal prosecution.’
She added: ‘In the long run, we merely couldn’t justify placing further stress on the wallets of hard-working households.’
Ms Dorries mentioned the licence price can be frozen for the subsequent two years earlier than then rising consistent with inflation for the next 4 years.
She mentioned: ‘The BBC wished the price to rise to over £180 by the top of this settlement. As an alternative it can stay fastened at £159 till April 2024.’
Ms Dorries mentioned a overview will now be launched to look at the way forward for the licence price funding mannequin.
She mentioned: ‘As any critical commentator will let you know the broadcasting panorama has modified past all recognition over the previous decade.
‘We live in a world of streaming giants, of on demand and on pay per view and sensible TVs. Expertise is altering every little thing.’
Ms Dorries instructed the Commons that ‘because the tech has modified, so have viewers habits, significantly amongst youthful viewers’.
‘So it’s time to start asking these actually critical questions on the long run funding mannequin of the BBC and whether or not a compulsory licence price with legal penalties for particular person households continues to be applicable,’ she added.
Ms Dorries had signalled yesterday that the BBC licence price can be scrapped after 2027 – if the Conservative Occasion continues to be in energy.
She had tweeted on Sunday morning: ‘This licence price announcement would be the final. The times of the aged being threatened with jail sentences and bailiffs knocking on doorways, are over.
‘Time now to debate and debate new methods of funding, supporting and promoting nice British content material.’
Officers have calculated that because of inflation at present working at 5.1 per cent the Company will now have to seek out financial savings of greater than £2billion over the subsequent six years due to the freeze.
Lord Grade instructed BBC Radio 4’s At the moment programme: ‘£159 a 12 months will not be some huge cash for Gary Lineker however it’s a heck of rather a lot for many individuals on this nation when there’s inflation, an vitality disaster and so forth. It’s an excessive amount of cash.
‘The BBC within the entirety of its historical past has all the time requested for more cash at each licence price settlement.
‘It has achieved properly reducing its prices over the previous few years, however what it’s by no means achieved is given up any turf. Why do we’d like BBC2 and BBC4? I don’t perceive it. The BBC is a bit just like the monarchy, it’s designed to outlive and develop.’
Lord Grade mentioned Ms Dorries had ‘fired the beginning pistol’ on the talk about what may substitute the licence price.
He continued: ‘I might rule out funding the BBC by promoting as a result of that may impoverish Channel 4 and Channel 5 and so forth. Subscription is a risk however what would you do about radio? There’s nowhere on this planet the place that works other than very specialised companies.
‘You would have grants in help. Somebody got here up with an concept that you might tax the massive streaming monoliths and so forth… there are lots of concepts.
‘Time will run out in a short time and if there’s going to be a transition from the licence price we have to have that debate now.
Ms Dorries tweeted yesterday morning that ‘this licence price announcement would be the final’
Lord Grade, who was additionally CEO of Channel 4 and chair of ITV, mentioned the licence price ‘will not be rather a lot for Gary Lineker’ however it was for unusual Britons
‘What do we would like from the BBC, how a lot ought to we spend on it and the way can we pay for it? There are an enormous variety of choices and I believe that’s what the Secretary of State was attempting to start out.’
Ms Dorries’ announcement comes after a collection of rows between the BBC and ministers over the Company’s alleged Left-wing bias.
Senior Authorities figures had been final week incensed by its protection of Mr Johnson’s apology to MPs over the Downing Road occasion row, complaining it ‘feels just like the BBC isn’t going to cease till he’s gone’.
The licence price at present earns the company £3.2billion a 12 months.
BBC executives, who had referred to as for the fee to extend consistent with inflation as in earlier years, instructed ministers it’s unfair to conflate perceptions of bias with funding preparations.
They argued that freezing the licence price will harm the BBC’s skill to provide hit programmes similar to Line of Obligation and David Attenborough’s nature collection.
Final 12 months, BBC Chairman Richard Sharp mentioned the price of a few of the Company’s largest exhibits has doubled, whereas drama prices alone have risen by round 35 per cent.
The Authorities thinks that an inflation-linked rise is indefensible at a time when households are going through an intense value of dwelling squeeze because of vitality worth rises and tax hikes.
An ally of Ms Dorries, the MP for Mid Bedfordshire and a best-selling novelist who has appeared on ITV’s I’m A Celeb…, instructed The Mail on Sunday: ‘There can be a variety of anguished noises about the way it will hit common programmes, however they will be taught to chop waste like every other enterprise.
‘This would be the final BBC licence price negotiation ever. Work will begin subsequent week on a mid-term overview to interchange the Constitution with a brand new funding components.
‘It’s over for the BBC as they realize it.’
Of their inner message to workers at the moment, Mr Davie and Mr Sharp reminded BBC workers the licence price is ‘fastened’ till the top of 2027 however mentioned what occurs after that ‘is a matter for public dialogue and debate’.
They continued: ‘In the mean time the discussions in regards to the future stage of the licence price for the remainder of this Constitution interval are nonetheless ongoing, though we do count on them to conclude very quickly.
‘We’ll proceed to make a robust case to the Authorities for investing within the BBC.
‘There are superb causes for investing in what the BBC can do for the British public, the UK artistic industries, and the place of the UK on this planet.
The Authorities’s proposed modifications to the broadcaster’s funding preparations are a part of Boris Johnson’s coverage blitz dubbed ‘Operation Pink Meat’, which goals to rebuild help amongst Tory MPs and voters after the Partygate row
‘That is the case that we’ll proceed to make to the Authorities proper till the final second.’
Nonetheless, the pair mentioned ‘it’s for the Authorities to set the licence price on the stage that they imagine is suitable’.
They added: ‘As quickly as we’ve extra info we are going to let you already know. Within the meantime, thanks in your continued arduous work, dedication and creativity.’
Ms Dorries has beforehand described the BBC as a ‘Left-wing’, ‘hypocritical’ and ‘patronising’ organisation which has too many ‘uninteresting, boring, male and ageing wig-wearing males’ on presenting duties.
