In line with the UK coalition government’s austerity programme, it has been decided to freeze the BBC license fee for the next year and possibility in 2012 as well.
It was announced on 16 September that the BBC Trust has proposed that the corporation’s current financing agreement with the government remain as is and place any license fee increases on hold for the next two years. The BBC Trust chairman Michael Lyons announced on 14 September that he is to stand down next May.
Media minister Jeremy Hunt said while he "welcomed" the proposal and accepted a one-year freeze — pegging the fee at £145.50 (about R1,500).
"A decision about 2012/13 will be taken as part of the next funding settlement," said Hunt.
"I have made it clear that the BBC needs to take proper account of the current economic climate and this move, which comes with the Trust’s assurances that it will not significantly impact on the quality of services provided to license fee payers, will be welcomed by the public."
The Trust said that a two-year freeze would take £144 million (about $14,000 million) out of planned BBC budgets.