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Tessa Jowell Announces TV Licence Fees For 2003-2004

Culture Secretary Tessa Jowell today announced the television licence fee increases effective from 1 April 2003.  A colour licence will cost £116.00 and a black and white licence will cost £38.50.


 

The rate of increase is set according to the formula announced by the Government in February 2000, following a review of the future funding of the BBC by an independent review panel.

Tessa Jowell announced the changes today in a written statement to the House of Commons.  She said:


"On 21 February 2000, the Government announced its conclusions on the recommendations of the independent review panel on the future funding of the BBC. In addition to a range of measures designed to improve BBC efficiency and accountability, the Government introduced a new funding formula providing for changes in the licence fee of RPI plus 1.5 per cent for each year from 2000-2001 to 2006-2007. This formula will enable the BBC to provide a strong and distinctive schedule of high quality programmes and remain at the forefront of broadcasting technology.


"Application of the RPI figure of 1.7% for the year to September 2002, plus 1.5%, to the current unrounded licence fees produces new rounded totals of £116.00 for a colour licence and £38.50 for a black and white licence. The necessary regulations to bring these fees into force will be laid before the House in due course."


Notes to Editors


Under this formula licence fee increases for each year from 2000/01 to 2006/07 are set at the Retail Prices Index (RPI) level plus 1.5%.   The increases are part of a package of measures introduced in response to the 1999 report by the independent review panel on the future funding of the BBC.  They will enable the Corporation to respond to the challenges of quality broadcasting in the digital age while meeting demands for greater transparency, accountability and cost effectiveness.

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