TV Licences for Over-75s

Lord Vaizey of Didcot Excerpts

Wednesday 8th May 2019 Commons Chamber

[Mr Whittingdale]

I am extremely grateful to my hon. Friend, because he allows me to quote the director-general. As I say, our negotiations were robust, but we emerged from them with the director-general issuing a public statement saying that it was

“the right deal… in difficult economic circumstances”.

He went on to say:

“Far from being a cut, the way this financial settlement is shaped gives us, effectively, flat licence fee income across the first five years of the next charter.”

[Mr Edward Vaizey (Wantage) (Con)]

I do not know whether my right hon. Friend will mention this part of the licence fee deal, but it is worth making the point that the last Labour Government imposed on the licence fee a levy to fund broadband roll-out, and because of the success of the broadband roll-out under our Government, we removed that levy from the BBC. While there was a stick with free TV licences, there were carrots with the removal of some of the subsidies the last Government had asked the BBC to provide.

[Mr Whittingdale]

I am grateful to my right hon. Friend, who was also a key player at that time as a Minister in the Department. He is absolutely right. I mentioned two of the BBC’s requests at the time—the unfreezing of the licence fee and the closure of the loophole—but he is correct to point out that the BBC had always been unhappy about the top-slicing of the licence fee to fund broadband, which it saw as far removed from the purpose of the licence fee. That was another agreement we reached with the BBC, which I think was why the BBC felt that it was a fair and proper settlement.