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| BBC licence fee 'to rise by 3%' | BBC licence fee 'to rise by 3%' |
| (about 1 hour later) | |
| Culture Secretary Tessa Jowell is expected to announce the TV licence fee will rise by 3% over each of the next two years, the BBC has learned. | Culture Secretary Tessa Jowell is expected to announce the TV licence fee will rise by 3% over each of the next two years, the BBC has learned. |
| She is due to outline the new deal in full in the Commons, which will see the fee rising to a maximum £151 by 2012. | She is due to outline the new deal in full in the Commons, which will see the fee rising to a maximum £151 by 2012. |
| The BBC had pressed the government for an above-inflation hike on the current £131.50 fee over the next six years to boost programmes and digital services. | The BBC had pressed the government for an above-inflation hike on the current £131.50 fee over the next six years to boost programmes and digital services. |
| Unions have warned that such a deal would lead to "heavy job losses". | |
| Heavy job losses | Heavy job losses |
| After the first two 3% rises the increases will slow before reaching the maximum agreed 2012 figure. | After the first two 3% rises the increases will slow before reaching the maximum agreed 2012 figure. |
| In an earlier e-mail to staff, BBC Director-General Mark Thompson said the corporation would face "some very difficult choices" if forced to accept a below-inflation increase. | |
| Unions have also warned that such a deal would seriously hit programmes. | |
| The government has already announced that a £600m portion of the settlement will be "ring-fenced" to help pay for the digital switchover. | The government has already announced that a £600m portion of the settlement will be "ring-fenced" to help pay for the digital switchover. |
| The deal will also ensure the £400m move of some departments to Salford goes ahead. | The deal will also ensure the £400m move of some departments to Salford goes ahead. |
| Ms Jowell is expected to follow her announcement by giving a keynote speech to the Oxford Media Convention. | Ms Jowell is expected to follow her announcement by giving a keynote speech to the Oxford Media Convention. |
| 'Tense negotiations' | 'Tense negotiations' |
| The BBC had argued it needed an extra £5.5bn over the next seven years to pay for more original programmes, new digital and local services and increased costs and free digital set top boxes for the elderly and infirm, as well as the huge new office in Salford. | The BBC had argued it needed an extra £5.5bn over the next seven years to pay for more original programmes, new digital and local services and increased costs and free digital set top boxes for the elderly and infirm, as well as the huge new office in Salford. |
| The BBC's business editor, Robert Peston, said the corporation wanted to be able to borrow up to £400m - double what it is currently allowed to do. | The BBC's business editor, Robert Peston, said the corporation wanted to be able to borrow up to £400m - double what it is currently allowed to do. |
| He exclusively revealed that Ms Jowell argued the BBC's case over tense negotiations during the past 24 hours, but the Treasury described the bid as "far too much". | He exclusively revealed that Ms Jowell argued the BBC's case over tense negotiations during the past 24 hours, but the Treasury described the bid as "far too much". |
| "At one stage, she threatened to postpone Thursday's planned parliamentary announcement of a new licence fee settlement," he said. | "At one stage, she threatened to postpone Thursday's planned parliamentary announcement of a new licence fee settlement," he said. |