BBC freezes licence fee for two years

By politics.co.uk staff

The BBC has offered to freeze the licence fee for the next two years.

The government is expected to approve the move, which will see a £144 million drop in the corporation’s budget, later today.

The move will be seen as an early attempt by the BBC to prove to government it is making the effort to deliver services at a reduced price given the financial environment.

The move would mean that the fee stays at £145.50 until March 2013. The corporation was entitled to raise it by two per cent in the next financial year and again by two per cent in the 12 months after that.

BBC executives are extremely wary of Jeremy Hunt, the new media secretary, who has pressured the corporation to reveal executive salaries and produce content for less money.