BBC License Fee Frozen for Six Years

LONDON: The BBC has reached a settlement with the government that freezes its license fee at the current rate of £145.50 until 2016/17—representing a budget reduction in real terms of some 16 percent, reports indicate.

Announcing the settlement, Sir Michael Lyons, chairman of the BBC Trust, noted, "This is a tough settlement, but it’s also a settlement that delivers certainty and stability for the BBC and license fee payers through to 2016/17. It reflects the centrality of the license fee in securing and safeguarding public service broadcasting. We recognize the importance of securing such a settlement at such an unprecedented time."

He added, "There is no doubt that the settlement will present us with some difficult choices, but importantly, these choices will remain firmly in the hands of the BBC Trust and we will of course seek the views of license fee payers."

The license fee will fund the BBC World Service, BBC Monitoring, and the BBC will make a contribution to funding S4C through a partnership, saving the Exchequer £340 million from 2014-15.

"The BBC is not government funded, but these are pressing times for the nation as a whole, and we believe license fee payers would expect us to see what contribution we can properly make," Lyons added. "The extra responsibilities the BBC will now take on are consistent with this and will deliver benefits to license fee payers across the U.K."

Mark Thompson, BBC’s director-general, noted, "This is a realistic deal in exceptional circumstances securing a strong independent BBC for the next six years. It means that efficiency and reform will continue to be key issues for us. But our focus remains providing distinctive, high quality programs valued by the public. This deal will safeguard that until 2017."