Paul Scholes issued a damning verdict on misfiring Manchester United after the Reds drew another blank in a listless defeat to West Ham.
07.12.2023 - 19:49 / deadline.com
EXCLUSIVE: BBC insiders have voiced alarm over a funding deal that has blown a £90M ($113M) hole in the UK broadcaster’s finances and sources say potentially threatens its independence.
The British government announced on Thursday that it would increase the BBC’s income in line with inflation, but ministers have ripped up the agreed way of measuring this price hike and the timetable for future funding settlements. A senior BBC insider said it was an “unhealthy way to do business.”
Culture secretary Lucy Frazer said the license fee, a levy that all UK households must pay to access BBC services, will increase by 6.7% from April 2024. This was the spot rate of inflation in September this year. Traditionally the government has pegged licence fee increases to an annual average of inflation, which would have been 9% in 2024 had this calculation been kept in place.
It means the £159 fee, which has been frozen for two years, will rise to £169.50 next year, and not £173.30 as the BBC had anticipated. The corporation estimates that this will leave it with a £90M funding gap on top of other savings plans, meaning it will lead to inevitable content cuts.
There is a view within the BBC that the government has broken promises made as part of its operating agreement, known as its charter. Deadline understands that the BBC has communication from the government that commits to calculating inflation increases as an annual average throughout the charter, which runs to 2027.
There is also concern that the settlement announced by culture secretary Frazer kicks the door open to annual funding deals, potentially leaving the BBC more vulnerable to political agendas.
The BBC’s funding is usually decided over five-year periods, but the
Paul Scholes issued a damning verdict on misfiring Manchester United after the Reds drew another blank in a listless defeat to West Ham.
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