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| Version 1 | Version 2 |
|---|---|
| BBC licence fee 'to rise by 3%' | BBC licence fee 'to rise by 3%' |
| (about 6 hours 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. |
| The deal, to be outlined in full in the Commons, will see the current fee of £131.50 rise to a maximum £151 by 2012. | |
| Borrowing limits will also be tighter than requested. The BBC had wanted an above-inflation hike in the licence to boost programmes and digital services. | |
| Unions have warned that such a deal would lead to "heavy job losses". | Unions have warned that such a deal would lead to "heavy job losses". |
| The corporation 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. | |
| It also said the money was needed to provide free digital set top boxes for the elderly and infirm, as well as a 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. | |
| But the borrowing limit will be increased to between £220m and £230m. | |
| 'Difficult choices' | |
| 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. | 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. | 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. |
| Ms Jowell is said to have 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," our correspondent said. | |