TELEVISION LICENCE FEE TO INCREASE IN APRIL

BROADCASTING Minister Kim Howells have announced the television licence fee increases effective from April 1, 2002. A colour licence will cost £112.00 and a black and white licence will cost £37.50.
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.
The changes were announced in answer to a Parliamentary Question from James Purnell, MP for Stalybridge & Hyde.
Howells said: “On February 21, 2000, the Government announced their 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 per cent for the year to September 2001, plus 1.5 per cent, to the current unrounded licence fees produces new rounded totals of £112.00 for a colour licence and £37.50 for a black and white licence. The necessary regulations to bring these fees into force will be laid before the House in due course.” (CD)