The BBC’s tax on TV viewers is to go up by much less than it demanded, according to press reports.
The BBC asked first for an increase of inflation plus 2.3% per year for seven years. Later it scaled this back to inflation plus 1.8%.
Culture Secretary Tessa Jowell has won an average annual increase of only 2.4% according to the reports, which will be 0.45% below projected inflation. This will mean a cut in funding measured in real terms.
Ms. Jowell has described the state media giant as “one of the most loved and trusted UK institutions”. She had hoped to win an annual increase in the licence of fee that was at least as high as inflation.
It is illegal in the UK to watch any TV channel, including satellite and cable channels, without a licence from the BBC. The current fee of £121 gives the Corporation £3bn annually.