Will the quarrel over the BBC’s report on the partygate and Boris Johnson’s apology cost the corporation in royalties talks?
- BBC report on partygate “could jeopardize royalty negotiations”
- Television is calling for increased funding to improve the quality of its programs
- Negotiations are underway on whether the annual levy will increase by £ 159
Talks on a new settlement to fund the broadcaster are now at a critical juncture as it advocates raising fees to fund its programs.
The license fee is expected to be frozen this year, but negotiations are still on whether the company will receive an increase in the current 159 pounds of annual costs next year, sources say.
They fear the dispute could affect these talks with the government.
A new royalty settlement will take effect in April, deciding on the funding the BBC will receive for at least five years. It is understood that the ministers had previously wanted to freeze the fee for the second year of the agreement as well.
But with growing concerns about rising inflation, there is now debate over whether some sort of rise would be more appropriate for another year.
Sources expect that for the remaining years of the transaction after that, royalties are likely to increase in line with inflation.
The dispute over the BBC’s report on Boris Johnson’s political turmoil threatens sensitive negotiations with ministers on the future of royalties for the corporation.
One senior source said the government originally wanted the price of royalties not to rise in the first two years of the settlement, but that would be “very difficult” because inflation was so high
One senior source said it would be “very difficult” because inflation was so high, even though the government originally wanted the royalty prices not to rise in the first two years of the settlement.
It is said that the ministers want to help the public face the cost of living crisis, but they do not want to punish the BBC.
Whatever the outcome, it is likely that BBC spending on television dramas will be severely affected in the coming years.
The BBC has also faced significant price inflation in the television industry, as the boom in streaming caused by Netflix and Amazon Prime Video has increased the cost of broadcasting, especially drama.
The publication of the license agreement took longer than expected. It used to be that the deal would be announced before Christmas. Pictured: Nick Robinson of Today
Dispute over BBC report on Boris Johnson’s political turmoil threatens sensitive negotiations with ministers on future royalties for corporation
Rishi Sunak was warned last night that he risks damaging his hopes for a leadership challenge if he maintains support for Boris Johnson.
In October last year, Culture Minister Nadine Dorries suggested that the BBC should tell her how it will ‘change’ before it receives the settlement fee.
Later that month, the BBC presented an action plan after the review to ensure that its content was “fair, accurate and impartial”.
Whatever the outcome, it is likely that BBC spending on television dramas such as The Tourist (above) will be severely affected in the coming years.
The publication of the license agreement took longer than expected. It used to be that the deal would be announced before Christmas.
It is understood that the main factor behind the delay was inflation concerns and the fact that the fight against the Covid-19 pandemic must have taken precedence.
Negotiations are under way, with some predicting an agreement may not be reached by the end of this month.
The BBC declined to comment.