BBC Funding (CSR)

Julie Hilling Excerpts

Wednesday 10th November 2010 Commons Chamber

[Mr Vaizey]

I suggest that the hon. Gentleman talks to those at The Guardian, as it is they who usually complain about the BBC crowding them out. The Guardian website remains free, and they claim that one of the difficulties they are finding with monetising its website is the presence of the BBC.

The agreed settlement that we reached with the BBC is a good deal for all parties that reflects the current economic environment. Most importantly, of course, it is an excellent deal for licence fee payers, delivering a freeze in cash terms in the £145.50 colour licence fee for the next six years. I was interested to hear the hon. Member for Livingston (Graeme Morrice) suggest that many of his constituents are writing in, wanting to pay more for the licence fee. I am not sure that that view is held nationwide.

[Julie Hilling (Bolton West) (Lab)]

I am concerned that a freeze for four years in fact represents a year-on-year cut, particularly when inflation is predicted to rise much higher than was expected, and with VAT increases coming in as well. Does the Minister agree that more than the initial cuts will need to be made because of the budget restrictions, but we will then face year-on-year cuts in the BBC that reduce its services and its ability to be the wonderful broadcaster that it currently is?

[Mr Vaizey]

As I say, the BBC will have to find savings; I shall come to that in a moment. It is important for Labour Members to make their position clear. If they think that the BBC licence fee should be increased, they should say so, and they should state the level at which they think it should be set.

The current licence fee settlement remains at £145.50. It is important to remember that for the first year this was volunteered by the BBC and the BBC Trust, and it was likely to be volunteered for the second year, and then we negotiated a freeze for the four years after that until March 2017. Within that settlement, as the hon. Member for Edinburgh South pointed out, the BBC has agreed to play an active role in supporting new local television services through a partnership fund providing capital costs of up to a total of £25 million in 2013-14 for up to 20 local TV services—city TV stations to provide truly local content rather than the regional content people have at the moment. The BBC will also commit to ongoing funding of up to £5 million per year from 2014-15 to acquire content for use on its own services from these new services. Should capital costs be required earlier, this will be facilitated by access to the existing digital switchover underspend by mutual agreement.