11/11/2003

Cost of TV licence set to rise

The cost of a TV licence is set to rise by £5 from next April, the Government announced today.

From 1 April 2004, a TV licence will now cost £121 while a black and white licence will go up from £38.50 to £40.50.

Culture Secretary Tessa Jowell announced the changes today in a written statement to the House of Commons. She said: "The television licence fee settlement announced by the Government in February 2000 provides for changes in the licence fee of RPI plus 1.5 per cent for each year from 2000-2001 to 2006-2007.

"This settlement is designed to enable the BBC to provide a strong and distinctive schedule of high quality programmes and remain at the forefront of broadcasting technology.

"The settlement includes a requirement for the Corporation to raise around £1.1 billion through efficiency savings and increased income over the same period."

The rate of increase is set according to the formula announced by the government in February 2000, following a report on the future funding of the BBC by an independent review panel.

(MB)

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