The row over the BBC’s protection of Boris Johnson’s political turmoil threatens delicate negotiations with ministers about the way forward for the company’s licence payment.
Talks on a brand new settlement for funding the broadcaster are actually at a important juncture because it argues for will increase within the payment to fund its programmes.
The licence payment is about to be frozen this yr however there are nonetheless tense negotiations about whether or not the company will get an increase on the present £159 annual price subsequent yr, sources say.
The dispute may have an effect on these discussions with the Authorities, it’s feared.
A brand new licence payment settlement comes into impact from April, which can resolve the funding the BBC will get for at the very least 5 years. It’s understood ministers had beforehand been eager on freezing the payment for yr two of the deal as effectively.
However amid growing issues about rising inflation, there may be now a debate about whether or not some type of rise can be extra applicable for the second yr as a substitute.
Sources anticipate that for the remaining years of the deal after that, the licence payment is more likely to rise according to inflation.
The row over the BBC’s protection of Boris Johnson’s political turmoil threatens delicate negotiations with ministers about the way forward for the company’s licence payment
One senior supply mentioned that, whereas the Authorities initially wished the primary two years of the settlement to see no licence payment value rise, this may be ‘very robust’ as a result of inflation was so excessive
One senior supply mentioned that, whereas the Authorities initially wished the primary two years of the settlement to see no licence payment value rise, this may be ‘very robust’ as a result of inflation was so excessive.
It’s claimed ministers need to assist the general public take care of the price of dwelling disaster, however they don’t need to punish the BBC.
Regardless of the final result, it’s possible the BBC’s spending on TV dramas will take a substantial hit within the coming years.
The BBC has additionally been confronted with vital TV trade value inflation, with the streaming growth attributable to the likes of Netflix and Amazon Prime Video driving up the price of reveals, particularly dramas.
The licence payment deal has taken longer to announce than anticipated. It was beforehand thought the settlement would have been introduced earlier than Christmas. Pictured: Nick Robinson of the In the present day programme
The row over the BBC ’s protection of Boris Johnson ’s political turmoil threatens delicate negotiations with ministers about the way forward for the company’s licence payment
Rishi Sunak was final evening warned he dangers damaging his management problem hopes by withholding assist from Boris Johnson
Final October Tradition Secretary Nadine Dorries advised that the BBC would wish to inform her the way it was ‘going to vary’ earlier than it obtained a settlement payment.
Later that month the BBC unveiled an motion plan to make sure its content material was ‘truthful, correct and unbiased’ after a evaluate.
Regardless of the final result, it’s possible the BBC’s spending on TV dramas akin to The Vacationer (above) will take a substantial hit within the coming years
The licence payment deal has taken longer to announce than anticipated. It was beforehand thought the settlement would have been introduced earlier than Christmas.
It’s understood a significant factor within the delay has been issues round inflation and the truth that tackling the Covid-19 pandemic has needed to take priority.
Negotiations are ongoing, with some predicting {that a} deal might not be agreed by the top of this month.
The BBC declined to remark.