§ Mr. Frank R. Whiteasked the Secretary of State for the Home Department if he is satisfied with the current level of financing of the British Broadcasting Corporation.
§ Mr. Merlyn ReesThe British Broadcasting Corporation has drawn my attention to the fact that its indebtedness will reach the limit of its borrowing powers early next year, unless in the meantime its income is raised by means of an increase in television licence fees. It has represented to me the desirability of my setting licence fees at levels which will provide it with an assured basis for planning its activities and developments for a reasonable period ahead. Specifically, it has proposed increases in licence fees to £12 for a monochrome licence and £30 for a colour licence, which, it says, would last it for three years.
763WI have carefully considered the BBC's estimates for the cost of its home services. The Government have decided that an increase in the present television licence fees, which have been in force since 30th July 1977, is necessary, and the appropriate regulations are being laid. I told the House on 27th February—[Vol. 945, c. 4–5]—that fee increases would come into effect at midnight on the day on which they were announced.
From midnight tonight, therefore, the fees will be increased from £9 to £10 for monochrome television reception and from £21 to £25 for colour television reception. The Government intend that these new fees should last for about a year.
These increases are designed to last for a shorter period than the BBC had asked for and will not provide for all the improvements in services which it had wished to introduce. The Government consider that at a time when the overriding need is to win the battle against inflation, viewers, many of whom have small incomes, will regard it as important that the increases in the licence fees should be kept to moderate levels. It will be for the governors of the BBC to decide how to adjust the corporation's planned expenditure in the light of the level of fees indicated. However, the Government have taken the cost of the additional Welsh language programmes mentioned in paragraph 72 of the White Paper on Broadcasting (Cmnd. 7294) into account in their review of the level of the licence fees.
I acknowledge the problems created by a one-year increase for the BBC's future planning, and the Home Office will be ready to enter into discussions with the BBC about its future financial requirements and about the basis upon which it can be enabled to carry forward its longer-term planning.