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BBC chief meets George Osborne to seek protection for licence fee funds BBC chief meets George Osborne to seek protection for licence fee funds
(17 days later)
The BBC’s director general is understood to have met with George Osborne in an attempt to head off government attempts to top-slice the licence fee.The BBC’s director general is understood to have met with George Osborne in an attempt to head off government attempts to top-slice the licence fee.
Tony Hall saw the chancellor recently following reports that the Department for Culture, Media and Sport is trying to reopen the financial settlement with the broadcaster that was agreed last July.Tony Hall saw the chancellor recently following reports that the Department for Culture, Media and Sport is trying to reopen the financial settlement with the broadcaster that was agreed last July.
As recently as last Thursday a DCMS minister suggested the issue of using some of the money collected from the licence fee for organisations other than the BBC is still “under discussion”.As recently as last Thursday a DCMS minister suggested the issue of using some of the money collected from the licence fee for organisations other than the BBC is still “under discussion”.
Any move towards such contestable funding would be strongly opposed by the BBC, which Lord Hall has already indicated would be a reopening of the agreed deal. One senior BBC source said on Monday: “We have had very recent assurances that the deal is a deal.”Any move towards such contestable funding would be strongly opposed by the BBC, which Lord Hall has already indicated would be a reopening of the agreed deal. One senior BBC source said on Monday: “We have had very recent assurances that the deal is a deal.”
BBC executives agreed a behind-closed-doors financial settlement with Osborne and culture secretary John Whittingdale last July, under which the corporation agreed to shoulder the cost of free licence fees for the over-75s in return for a series of concessions.BBC executives agreed a behind-closed-doors financial settlement with Osborne and culture secretary John Whittingdale last July, under which the corporation agreed to shoulder the cost of free licence fees for the over-75s in return for a series of concessions.
BBC concerns have recently mounted, Baroness Neville-Rolfe, parliamentary under secretary for the DCMS, told the House of Lords last Thursday that the model of contestable funding, or top-slicing, is still “under discussion” as part of the white paper set to be published on charter renewal. BBC concerns have recently mounted, Lady Neville-Rolfe, parliamentary under secretary for the DCMS, told the House of Lords last Thursday that the model of contestable funding, or top-slicing, is still “under discussion” as part of the white paper set to be published on charter renewal.
In a speech, Neville-Rolfe noted that media regulator Ofcom had already raised concerns about children’s television being an area of programming at risk of funding cuts.In a speech, Neville-Rolfe noted that media regulator Ofcom had already raised concerns about children’s television being an area of programming at risk of funding cuts.
“There have been calls from some quarters to allow part of the licence fee – or some other form of public funding – to be made available for public service broadcasting to organisations other than the BBC. That is the contestable funding model … That model is under discussion and our plans will be set out in the white paper.”“There have been calls from some quarters to allow part of the licence fee – or some other form of public funding – to be made available for public service broadcasting to organisations other than the BBC. That is the contestable funding model … That model is under discussion and our plans will be set out in the white paper.”
The speech came after the Sunday Times and Broadcast magazine reported that Whittingdale was looking to hand as much as £100m of the licence fee to third parties to produce children’s programming and other content.The speech came after the Sunday Times and Broadcast magazine reported that Whittingdale was looking to hand as much as £100m of the licence fee to third parties to produce children’s programming and other content.
The BBC has long feared that top-slicing would be used as a kind of Trojan horse by the government to share licence fee funding for all public service broadcasting and not just the corporation.The BBC has long feared that top-slicing would be used as a kind of Trojan horse by the government to share licence fee funding for all public service broadcasting and not just the corporation.
As long ago as last September, Hall made clear that any attempt to take further funding from the £3.7bn licence fee would be considered a violation of the pact. He told an industry conference: “Let me make it clear for the record that any suggestion of top-slicing … would be seen by us as reopening the [funding] agreement.”As long ago as last September, Hall made clear that any attempt to take further funding from the £3.7bn licence fee would be considered a violation of the pact. He told an industry conference: “Let me make it clear for the record that any suggestion of top-slicing … would be seen by us as reopening the [funding] agreement.”
Official records released last December showed that Osborne met Hall and other senior BBC executives in September 2015, the same month he met with Rupert Murdoch. Osborne also held two meetings with the News Corp boss in June of the same year.Official records released last December showed that Osborne met Hall and other senior BBC executives in September 2015, the same month he met with Rupert Murdoch. Osborne also held two meetings with the News Corp boss in June of the same year.
Discussions were held with several organisations including the Arts Council about the licence fee but it is not clear which organisations would produce the public service broadcasting felt to be most at risk, such as children’s.Discussions were held with several organisations including the Arts Council about the licence fee but it is not clear which organisations would produce the public service broadcasting felt to be most at risk, such as children’s.
Neville-Rolfe also called the proposal of extending future BBC charters from 10 to 11 years in order to decouple them from the electoral cycle “an interesting idea” in the Lords.Neville-Rolfe also called the proposal of extending future BBC charters from 10 to 11 years in order to decouple them from the electoral cycle “an interesting idea” in the Lords.
She reiterated statements made by other department ministers that the white paper would be published in May.She reiterated statements made by other department ministers that the white paper would be published in May.
The BBC declined to comment and a spokesman for the DCMS said it would neither confirm nor deny the top-slicing reports, adding, “Everything will be set out in the white paper.”The BBC declined to comment and a spokesman for the DCMS said it would neither confirm nor deny the top-slicing reports, adding, “Everything will be set out in the white paper.”