Government to speed up PSB review

Chancellor of the exchequer Gordon Brown is to sanction an earlier-than-expected review into whether broadcasters other than the BBC should receive taxpayers' money.

The review, first proposed in a government white paper in March 2005, was to have taken place "towards the end" of the switchover from analogue to digital television in 2012 or 2013.

The study will examine whether there is a case for wider use of public funding, including licence fee money, to fund public service broadcasting "beyond the BBC".

The government's move follows lobbying by broadcasters hit by falling revenues from television advertising.

MPs on the media select committee have been warned that ITV may be forced to cut back on regional programming and regional news. And that the BBC could become the only UK broadcaster producing children's programmes within a few years.

Top sliced licence fee

The BBC, however, has made it clear that it will be opposed to any of its licence fee being top-sliced and redistributed to other broadcasters at a time when it is being forced to make cutbacks.

Director General Mark Thompson has told Parliament that, because of the lower-than-expected licence fee settlement, the BBC will have to think again about plans to establish 60 local television stations.

He also said that in the future the BBC will buy fewer programmes from the US.

Thompson went on to admit that a further round of redundancies among BBC staff is on the way. The BBC management is currently identifying where cuts can be made before presenting its recommendations to the BBC Trust.

Short term support

Meanwhile, broadcasting minister Shaun Woodward has told the media select committee that the government is examining whether short-term financial support can be given to Channel 4 as the broadcaster is expected to face funding problems because of digital switchover.

Channel 4 receives taxpayers' support through the free use of spectrum but it will lose this when the analogue signal is switched off.

Another decision Gordon Brown will have to make is whether to auction off spectrum released by digital switchover or yield up some to broadcasters to help them meet the demand for high definition television.

Ofcom has suggested spectrum should be auctioned and broadcasters should in future have to pay for the spectrum they use.

Source: Broadcast Now