[cma-l] Government relaxes funding rules and extends licences for up to five years in move welcomed by community radio stations

[CMA-L]

Community radio stations across the UK are set to benefit from a package of
changes that will help them thrive and continue to provide a valued radio
service to their local communities.

Current rules mean there are strict financial limits in place on how much
income the 217 community radio stations in the UK can generate from
advertising and sponsorship. Under the planned changes, all community radio
stations will all be able to raise at least £15,000 in income from
commercial sources before any limits kick in.

Ed Vaizey, Minister for the Digital Econom
<https://www.gov.uk/government/people/ed-vaizey>y, said:

*Community radio stations are at the heart of the localities they serve.
They provide an important relevant service alongside the BBC and commercial
radio. These changes will make sure that community radio stations can raise
the funding they need to remain viable and can continue to provide a
valuable community focused service.*


Welcoming the news Dom Chambers, Chair of Community Media Association
<http://www.commedia.org.uk/>, said:

*Community radio has proved itself a powerful medium that drives positive
social change by impacting on participants, communities and audiences - the
Government really get that.*

*The Community Radio Order has provided a supportive framework for
community radio to bed into the local broadcasting landscape. The changes
to relax the rules around commercial revenue and allow for a further
five-year licence renewal will be particularly welcome by sector. I hope
the changes will also trigger the sector to grow and fulfill it’s potential
working with Government.*


Under the current rules in the Community Radio Order 2004, most community
radio stations can only raise 50 per cent of their income from commercial
sources, with 19 stations not allowed to make any money from advertising at
all as they compete in the same market as small commercial radio stations.

The Government is making these changes to the rules following a public
consultation last year. Those community radio stations operating in areas
covered by small independently operated commercial stations will only be
allowed to raise any further income above the new £15,000 limit where the
commercial station has taken advantage of the Digital Economy Act to share
premises. However, some protections will remain to safeguard independently
owned commercial stations in smaller markets.

Martyn Haynes, director at 101.8 WCR FM <http://www.wcrfm.com/> in
Wolverhampton, said:

*As a community radio station run entirely by volunteers, we welcome the
funding changes that will allow us to continue broadcasting across the
airwaves of Wolverhampton. Over the years our profile in the city has grown
and we look forward to a more stable footing as we continue to provide a
wide range of music and speech output as well as delivering training and
work experience.*


Shirley Ludford, station manager and trainer at Swindon 105.5
<http://www.swindon1055.com/> community radio station, said:

*I am delighted at this news, which will enable me and the team to spend
more time on the delivery of our service and less on fundraising and grant
applications. This change will allow us greater freedom to be creative in
developing the station and securing its future. It’s great news to start
the year after ending it with a Queens Award for our service to the town.*


The Government has also announced that it will provide Ofcom the power to
extend licences for community radio for a third term, for a period up to
five years, where it is satisfied the community radio station continues to
meet current licencing conditions. The changes will give further stability
to the sector and allow the early pioneer stations launched before 2008 to
continue to support their communities up to the early 2020s.

*Notes for editors*

   - The amendments to the Community Radio Order 2004 will be laid before
   Parliament shortly
   - The Government has published a response to the consultation on
   Community Radio
   <https://www.gov.uk/government/consultations/community-radio-consultation>
   - The Government has also published the Impact Assessment
   <https://www.gov.uk/government/consultations/community-radio-consultation>
   - Details of community radio stations in the UK can be found on the
Community
   Media Association website <http://www.commedia.org.uk/map>

\\

Community Media Association
-- 
http://www.commedia.org.uk/
http://twitter.com/community_media
https://www.facebook.com/CommunityMediaAssociation

Canstream Internet Radio & Video
http://www.canstream.co.uk/
https://twitter.com/canstream
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