TV LICENCE FEES INCREASED AFTER REVIEW

CULTURE Minister Janet Anderson has announced an increase in licence fees, following the review on the future funding of the BBC by an independent review panel chaired by Gavyn Davies.
The rate of increase in licence fees is set according the formula announced by Culture Secretary Chris Smith in February after the review was carried out. A colour licence will now cost £109 and a black and white licence will cost £36.50.
DCMS Minister, Janet Anderson, announced the changes in answer to a Parliamentary Question. Anderson said: “On 21 February this year the Secretary of State announced the Government's 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, which provides 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 benchmark quality programmes and remain at the forefront of the development of digital broadcasting services. The new licence fees will come into force on 1 April 2001. The necessary regulations to bring these fees into force will be laid before the House in due course.”
The increases are part of a package of measures introduced in response to the Davies report. They are set to enable the BBC to respond to the challenges of quality broadcasting in the digital age while meeting demands for greater transparency, accountability and cost effectiveness.