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| George Osborne considers making BBC pay £600m cost of free TV licences | George Osborne considers making BBC pay £600m cost of free TV licences |
| (35 minutes later) | |
| The BBC is facing the threat of a budget cut that would be among the biggest in its 93-year history as George Osborne considers making the corporation carry the £600m-a-year cost of free television licences for the elderly. | The BBC is facing the threat of a budget cut that would be among the biggest in its 93-year history as George Osborne considers making the corporation carry the £600m-a-year cost of free television licences for the elderly. |
| The proposal is among those being argued over as the Chancellor prepares to deliver his Budget on 8 July, when he will sketch out how the Conservatives plan to carry their election promise to slash the welfare budget by £12bn a year, with full details to be set out in the autumn. Transferring the cost of free licences from the taxpayer to the licence-fee payer would help Mr Osborne towards his savings target. | The proposal is among those being argued over as the Chancellor prepares to deliver his Budget on 8 July, when he will sketch out how the Conservatives plan to carry their election promise to slash the welfare budget by £12bn a year, with full details to be set out in the autumn. Transferring the cost of free licences from the taxpayer to the licence-fee payer would help Mr Osborne towards his savings target. |
| The BBC is also facing the possible loss of £200m a year if the law around television licences is changed, so that not paying for one ceases to be a criminal offence. Around 3,000 people a week appear in court for non-payment, and the BBC fears that removing the threat of imprisonment will encourage a large number not to pay. | The BBC is also facing the possible loss of £200m a year if the law around television licences is changed, so that not paying for one ceases to be a criminal offence. Around 3,000 people a week appear in court for non-payment, and the BBC fears that removing the threat of imprisonment will encourage a large number not to pay. |
| Chancellor George Osborne will present his post-election budget on 8th July (Getty) | |
| Labour’s shadow Culture Secretary, Chris Bryant, said the sudden loss of income would have a catastrophic impact on the corporation’s radio and television output. | Labour’s shadow Culture Secretary, Chris Bryant, said the sudden loss of income would have a catastrophic impact on the corporation’s radio and television output. |
| The number of people claiming a free television licence has increased steadily since Gordon Brown introduced the benefit in 2001. By 2013, it covered 77,000 homes, at a cost to the Department for Work and Pensions of £608m. The figure is expected to continue rising as the population ages. | The number of people claiming a free television licence has increased steadily since Gordon Brown introduced the benefit in 2001. By 2013, it covered 77,000 homes, at a cost to the Department for Work and Pensions of £608m. The figure is expected to continue rising as the population ages. |
| The new Culture Secretary, John Whittingdale, argued for transferring the cost to the BBC during his previous role chairing the Commons Culture committee. His elevation to his current role was greeted by some as a declaration of war on the BBC by the Government, though Mr Whittingdale has said he wants the Corporation to remain a public service broadcaster. | The new Culture Secretary, John Whittingdale, argued for transferring the cost to the BBC during his previous role chairing the Commons Culture committee. His elevation to his current role was greeted by some as a declaration of war on the BBC by the Government, though Mr Whittingdale has said he wants the Corporation to remain a public service broadcaster. |
| However, Mr Bryant claimed that forcing a huge cut on the BBC would be “preposterous”. “The cost is [nearly] a quarter of the BBC’s income. They would have to slash production budgets, get rid of channels and close down local radio. It would be a decapitation policy. | However, Mr Bryant claimed that forcing a huge cut on the BBC would be “preposterous”. “The cost is [nearly] a quarter of the BBC’s income. They would have to slash production budgets, get rid of channels and close down local radio. It would be a decapitation policy. |
| “It is very clearly what they’re considering, but it’s preposterous. The job of the BBC is to inform, educate and entertain – all three. Some in the Conservative Party want to get the BBC to do just the first two and drop the third.” | “It is very clearly what they’re considering, but it’s preposterous. The job of the BBC is to inform, educate and entertain – all three. Some in the Conservative Party want to get the BBC to do just the first two and drop the third.” |
| The BBC’s charter and the £145.50 annual licence fee are currently up for renewal on what Mr Whittingdale described in Parliament as a “tight” timetable. | The BBC’s charter and the £145.50 annual licence fee are currently up for renewal on what Mr Whittingdale described in Parliament as a “tight” timetable. |
| In April 2014, the BBC took on the £245m-a-year cost of running the World Service, which had previously come out of the Foreign Office budget | In April 2014, the BBC took on the £245m-a-year cost of running the World Service, which had previously come out of the Foreign Office budget |
| The new Culture Secretary is a well-known critic of the licence fee, and of alleged political bias in the BBC, but in a recent interview Mr Whittingdale said: “It never was the case that I was going in to go to war with the BBC.” | The new Culture Secretary is a well-known critic of the licence fee, and of alleged political bias in the BBC, but in a recent interview Mr Whittingdale said: “It never was the case that I was going in to go to war with the BBC.” |
| A Treasury spokeswoman said: “We don’t comment on Budget speculation.” | A Treasury spokeswoman said: “We don’t comment on Budget speculation.” |