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| MPs reject freeze of licence fee | |
| (39 minutes later) | |
| MPs have rejected by two to one Conservative proposals to "freeze" the TV licence fee for a year. | |
| In April the annual fee for a colour TV licence went up by £3 to £142.50 - a 2% rise, linked to inflation - under the terms of a six-year settlement. | In April the annual fee for a colour TV licence went up by £3 to £142.50 - a 2% rise, linked to inflation - under the terms of a six-year settlement. |
| The Tories said a freeze was needed next year if the BBC were to maintain public support in tough economic times. | |
| Culture secretary Andy Burnham told the Commons: "Now is not the time to be ripping up the licence fee settlement." | Culture secretary Andy Burnham told the Commons: "Now is not the time to be ripping up the licence fee settlement." |
| 'Never over-funded' | 'Never over-funded' |
| He added that the prospect of year-on-year funding for the BBC would "undermine" its work and "take away its creativity and stability". | He added that the prospect of year-on-year funding for the BBC would "undermine" its work and "take away its creativity and stability". |
| Mr Burnham also said that while the BBC provided "good value" for licence fee payers, it should be "adequately but never over-funded". | Mr Burnham also said that while the BBC provided "good value" for licence fee payers, it should be "adequately but never over-funded". |
| Shadow culture secretary Jeremy Hunt said: "The BBC too needs to maintain its bond of trust with the British people. | Shadow culture secretary Jeremy Hunt said: "The BBC too needs to maintain its bond of trust with the British people. |
| "That means understanding that when times are tough, you don't just pocket the money allocated to you in happier times - you listen to people's concerns and you respond to the very changed economic circumstances of 2009." | "That means understanding that when times are tough, you don't just pocket the money allocated to you in happier times - you listen to people's concerns and you respond to the very changed economic circumstances of 2009." |
| The licence fee should only be used to enable the BBC to deliver its public services Sir Michael Lyons, BBC Trust chairman Send us your comments | The licence fee should only be used to enable the BBC to deliver its public services Sir Michael Lyons, BBC Trust chairman Send us your comments |
| The Conservative proposal for a one-year freeze in the licence fee was announced by party leader David Cameron in March. | The Conservative proposal for a one-year freeze in the licence fee was announced by party leader David Cameron in March. |
| He said the BBC and other public bodies needed to maintain public support in the current economic climate by doing more with less. | He said the BBC and other public bodies needed to maintain public support in the current economic climate by doing more with less. |
| BBC Trust chairman Sir Michael Lyons said in a speech last night that the plan is "a recipe for curbing the BBC's editorial independence". | BBC Trust chairman Sir Michael Lyons said in a speech last night that the plan is "a recipe for curbing the BBC's editorial independence". |
| "The traditional system of multi-year funding agreements... underpins the BBC's editorial independence." | "The traditional system of multi-year funding agreements... underpins the BBC's editorial independence." |
| Sir Michael said the tradition of setting the licence fee for several years meant the BBC's journalists did not have to trim their reporting to the prevailing political wind. | Sir Michael said the tradition of setting the licence fee for several years meant the BBC's journalists did not have to trim their reporting to the prevailing political wind. |
| During his speech, Sir Michael made reference to the usage of a potential surplus in cash allocated for the switchover to digital television in 2012. | During his speech, Sir Michael made reference to the usage of a potential surplus in cash allocated for the switchover to digital television in 2012. |
| 'Wrong in principle' | 'Wrong in principle' |
| Some of the licence fee has been set aside to help vulnerable groups with the change. | Some of the licence fee has been set aside to help vulnerable groups with the change. |
| Sir Michael Lyons, chairman of the BBC Trust, discusses whether the BBC licence fee should be frozen | Sir Michael Lyons, chairman of the BBC Trust, discusses whether the BBC licence fee should be frozen |
| And it has been suggested that any leftover digital switchover money could be used to fund universal broadband as part of the government's Digital Britain plans. | And it has been suggested that any leftover digital switchover money could be used to fund universal broadband as part of the government's Digital Britain plans. |
| But Sir Michael said research carried out by Ofcom suggested the public would like any surplus money to be paid back. | But Sir Michael said research carried out by Ofcom suggested the public would like any surplus money to be paid back. |
| He said: "The licence fee should only be used to enable the BBC to deliver its public services. | He said: "The licence fee should only be used to enable the BBC to deliver its public services. |
| "The digital switchover help scheme is consistent with that. The rollout and take-up of universal broadband may be consistent with that. We'll see. | "The digital switchover help scheme is consistent with that. The rollout and take-up of universal broadband may be consistent with that. We'll see. |
| "But taking licence fee payers' money and giving it to other causes and commercial players clearly isn't. | "But taking licence fee payers' money and giving it to other causes and commercial players clearly isn't. |
| "It's wrong in principle, it undermines the BBC's accountability to licence fee payers, and it risks compromising the BBC's independence." | "It's wrong in principle, it undermines the BBC's accountability to licence fee payers, and it risks compromising the BBC's independence." |