The BBC is to warn of serious economic consequences if the Government cuts the TV licence fee.
A PwC report, commissioned by the BBC, claims that cutting the licence fee by a quarter over the next five years would cost the economy £630m and lead to 32,000 job losses.
Several high ranking BBC executives are scheduled to appear on stage at the annual Edinburgh Television Festival, which starts next Wednesday.
Some of the BBC's most loathsome characters - Danny Cohen, James Purnell and James Harding - are expected to use evidence from the report to bolster support for the continuation of the licence fee.
As the law stands at the moment, a TV licence is required for every property where equipment is used to receive TV programmes. The licensing system raises more than £3.6bn for the BBC each year.
The PwC report claims that every £1 spent on the licence fee raises an additional 60 pence for the greater economy. The report also claims that a 15% increase in the licence fee would boost the economy by £319m and create more than 16,000 new jobs.
Speaking ahead of the Festival, a BBC source told the Telegraph: "The BBC is the cornerstone of our creative industries and the evidence is clear - a strong BBC is good for growth and the UK economy.
"The licence fee creates and supports tens of thousands of jobs and businesses in the private sector because of the programmes and services we buy."
Of course you wouldn't really expect the BBC to say anything else, with the Sword of Damocles dangling ever closer.
4 comments:
"A PwC report, commissioned by the BBC, claims that cutting the licence fee by a quarter over the next five years would cost the economy £630m and lead to 32,000 job losses."
This tells me that as it stands they are being heavily subsidised by people who do not require a TV license but, through ignorance, intimidation or apathy are paying for one. Removing the license fee and making it a subscription service at the same, or increased, cost would cause a dive in revenue because fewer people would pay it. Ergo there are people who are paying the license fee today who have no need or desire to.
And they are lobbying for this to continue as the status quo. Disgraceful. This is basically taxation, except in this case it's not paying for critical infrastructure but for reality TV and Dad's Army repeats.
Exactly my sentiments, Chris - and well expressed!
That £630 million doesn't just disappear - it will be spent elsewhere, providing employment for thousands of other people. The overall effect on the economy will be roughly zero. Methinks the Auntie doth protest too much.
3.6 billion minus 360 million equals two billion nine hundred seventy million. One would think that the BBC could claw that back with their international sales through BBC Worldwide. It's been long known that the BBC sell programmes made with the TV Licence to other countries using their worldwide service and that the majority of those other countries don't even pay an annual fee for it. Or is that not correct? Even still, if the BBC went to a subscription based service, they would have more freedom to choose how much they ask for, in much the same way as Sky do (unless their income is decided by an outside company).
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