The Department has held numerous discussions with the management of the BBC on a wide range of issues as part of charter review, including on the BBC's proposals to move a significant amount of production outside London, particularly to the north west of England. The Government welcome the BBC's proposals in principle, subject to proper consideration of value for money.
The BBC’s current licence fee settlement runs until the end of financial year 2006-07. The Government are currently conducting a funding review to determine the level of the television licence fee to apply from April 2007. It will announce the outcome later this year.
(2) what account she will take of the licence fee increase agreed in 2001 in determining the appropriate level of the BBC licence fee in the future;
(3) how she plans to determine affordability in setting the appropriate future level of the BBC licence fee;
(4) what account she will take of commitments to ensure (a) efficiency savings and (b) the prevention of inflation of staff and talent costs at the BBC in determining the future level of the BBC licence fee.