§ Lord Brougham and Vauxasked Her Majesty's Government:
Whether they are yet able to announce the level of the television licence fees to take effect from 1st April 1990.
Earl FerrersOn 27th October 1987 my right honourable friend the Member for Witney (Mr. Douglas Hurd) announced that the licence fees for the three years starting from 1st April 1988 would be calculated in accordance with changes in the retail prices index, which determines the rate of increase of pensions and other state benefits.
The RPI figure for September published on 13th October showed a year on year increase of 7.6 per cent. My right honourable friend the Home Secretary has accordingly decided that from 1st April 1990 the colour licence fee should be £71 and the monochrome fee £24. The necessary regulations will be laid before the House in due course.
As was made clear in last year's White Paper on Broadcasting in the '90s (Cmnd. 517), fee increases from 1st April 1991 onwards may be set at less than RPI in a way which takes account of the BBC's capacity to generate income from subscription.