Outrage at BBC licence fee 'stealth tax'

Politicians and consumer groups have expressed outrage over the BBC’s proposals to increase the licence fee over the rate of inflation from 2007.

Commenting on the proposals Tory Shadow Secretary of State for Culture, Media and Sport, Theresa May said: "Yet again another Labour stealth tax will hit the poorest in Britain. This is the latest in a long line of Gordon Brown's stealth taxes, and this time it is the licence fee payer who will have no choice but to foot the bill.

"Government has pressed ahead with the introduction of digital TV, yet it is of great concern that the rise in the licence fee does not take into account the £400-£600 million needed to ensure that vulnerable people, such as the elderly and severely disabled, are not left behind in the switch over to digital TV.

"At a time when licence fees are increasing, hardworking people should be able to expect better value for money from the BBC. As well as concerns about the quality of some of the services available on digital TV, the BBC is intending to spend an extra £330m relocating to Manchester, without making sufficient savings elsewhere. The public deserve greater reassurance that the BBC is providing value for their money."

Don Foster, Liberal Democrat Shadow DCMS Secretary, said: "Plans for more quality programmes, fewer repeats, expanded education provision, and access to programmes online and on demand are welcome.

"Achieving all this for a real terms increase of an extra 5 pence per week each year, seems good value and subject to close scrutiny of the details, we will support these proposals.

"But it's difficult to see why Licence Fee payers should pay for more than their fair share of the digital switchover. The licence fee must not become just another Government stealth tax. Viewers should be protected from a licence fee smash and grab.

"The Chancellor cannot treat the world's leading public service broadcaster as a cash cow to plug his growing deficit."

Chair of the Voice of the Listener & Viewer (VLV), Jocelyn Hay, said: "The move from analogue to digital television transmission is public policy. VLV agrees that the BBC, as the UK’s leading public service broadcaster should play the leading role in rolling out digital transmission and services. However, licence fee payers should not carry the full burden of the costs involved in paying for new equipment and its installation for vulnerable viewers.”

Hay said it was a "step too far" to "expect licence fee payers, via an increased licence fee, to pick up the costs for ‘vulnerable’ viewers".

She called on the Government to give "accurate figures as to what the numbers and costs will be".

(GB/SP)