§ Mr. Michael Brownasked the Secretary of State for the Home Department whether he is yet able to announce the level of the television licence fees to take effect from 1 April 1988; and if he will make a statement.
§ Mr. HurdThe television licence fee has remained at £58.00 for a colour licence and £18.00 for a monochrome licence since 28 March 1985. On 14 January this year, at column 263, I announced that the fee would be increased only in line with the increase in retail prices index. I also 201W said that the increase would be calculated from a notional baseline fee of £60.00 for a colour licence and £2000 for a monochrome licence.
The principle of indexation and the choice of the baseline were both designed to encourage increased efficiency and economy by the BBC. Its costs had historically risen at a higher rate than the RPI and it was then planning to spend money on the provision of television and radio services in the present financial year at a rate higher than that represented by the baseline fee.
The RPI figure for September published on 9 October showed a year on year increase of 4.2 per cent. I have accordingly decided that from 1 April 1988 the colour licence fee should be £62.50 and the monochrome fee £21.00. The necessary regulations will be laid before the House in due course.
As I have already announced, the licence fee for the two years starting 1 April 1989 and 1 April 1990 will also be calculated in accordance with changes in the RPI, which themselves determine the rate of increase of pensions and other state benefits.