The BBC Licence Fee is to be frozen for six years under a new funding deal agreed between the corporation and coalition government ministers.
In addition to the freeze, which is equivalent to a 16% real terms cut, the BBC will have to meet the costs of running Welsh language channel S4C and take over funding of the World Service from the Foreign Office.
The new deal comes after reports of that the BBC would be asked fund free licence fees for over 75 year olds, a move the BBC Trust said it would oppose.
News of the six year freeze comes just a month after the BBC Trust announced it would not be seeking the 2% increase the Corporation “is entitled to” next year under the current Licence Fee settlement.
The BBC has repeatedly faced criticism over excessive pay for both onscreen ‘talent’ and executives as well lavish expenses claims for hotels, travel and hospitality and today’s deal is likely to be seen as attempt by ministers to curb the corporation’s spending.
