[Community Television] TV licence to increase to £126.50

[Michelle McGuire]

TV licence to increase to £126.50

The price of a colour TV licence will increase by £5.50 from April 
2005, the government announced on Thursday.

Culture Secretary Tessa Jowell announced the increase in a statement to 
the House of Commons.

The rise would help provide "a strong and distinctive schedule of high 
quality programmes," said Ms Jowell.

However, she stressed that the BBC would be required "to raise over 
£1bn through efficiency savings and increased income over the same 
period".

The cost of a colour licence will increase by £5.50 to £126.50, and a 
black and white licence by £1.50 to £42, with effect from 1 April, 
2005.

"The television licence fee settlement provides for changes in the 
licence fee of Retail Price Index plus 1.5% for each year from 
2000-2001 to 2006-2007," said Ms Jowell.

"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."

In June, former BBC chairman Gavyn Davies said the corporation would be 
unlikely to ask for a TV licence fee increase when its charter is 
renewed.

He told an audience in Oxford the BBC would not ask for a rise "for 
fear of being laughed out of court".

Mr Davies left the BBC's board of governors when the corporation was 
criticised in the Hutton Report.

A poll conducted by ICM for Panorama earlier this year suggested almost 
70% of people in the UK want changes to the way the BBC is funded.

Source: BBC Online
http://news.bbc.co.uk/1/hi/entertainment/tv_and_radio/4022873.stm