Adam Sherwin, Media Correspondent
Win a fitness package worth more than £3,000

The BBC could be forced to share the licence fee with rival broadcasters after the Government signalled that the corporation’s exclusive right to public funding would come to an end.
James Purnell, the Culture Secretary, suggested that the £3.4 billion licence fee could be carved up in future between the BBC and commercial broadcasters committed to making quality, public-service programmes.
Sir Michael Lyons, chairman of the BBC Trust, said that a “contested” licence fee that reduced the BBC’s budget could threaten its ability to deliver public-service programmes and prompt a viewers’ revolt.
Mr Purnell made his announcement at a conference on media regulation at the University of Oxford. He said that the Government was prepared to be bold in establishing a framework for the digital broadcasting era.
He said: “Let’s put the question starkly: do we think it’s sustainable for every penny of the licence fee to go to a single organisation in an industry which now has very many providers rather than just a handful? Would some form of contestability for licence-fee funding help to sustain quality, innovation and efficiency?”
The status quo did not appear to be an option. Referring to a comment once made by Tony Blair, Mr Purnell said: “It was once said that we are at our best when we are at our boldest. The flipside for broadcasting is: people are at their worst when they are at their most conservative. The greatest unwitting enemies of public-service broadcasting are those who say we should leave it be. I’m afraid the world doesn’t allow for that.”
Channel 4 could prove one of the beneficiaries of a licence fee that is “top-sliced”. The channel has argued that it needs public funding to maintain its public service output in a multi-channel, competitive environment. Andy Duncan, the channel’s chief executive, said: “Some form of new funding underpinning needs to be provided for Channel 4 so that we can renew our public purposes. We can’t spend several years debating the issues.”
Sources close to Mr Purnell say that he added the “top-slicing” section to his speech after Sir Michael had appeared to rule out any radical change when he spoke to the conference.
Criticising the concept of a shared licence fee, Sir Michael said: “Currently, the licence fee payer knows exactly where the money is going and who to hold to account. Should we not think very carefully indeed before diluting or blurring the clarity of the current arrangement?”
He added that viewers might not be happy to pay an additional 10 per cent on their licence fee to fund programmes on other channels that they may not wish to watch. He said: “The number of people who wish to pay more tax is a very small community.”
A shared licence fee could not come into effect until 2013, when the current settlement comes to an end. Mr Purnell said the Government would conduct a review into how public-service broadcasting could be funded outside the BBC after an Ofcom investigation. He rejected one proposal to create a “arts council of the air”, which could distribute licence fee money to producers who had worthy projects.
Mr Purnell said: “I think the risk that posh programmes disappear into a space all of their own, rarely to be visited by those without a prior grounding in the subject matter, is very real.”
Ofcom has suggested that a £300 million fund, known as the Public Service Publisher, could distribute funds for programming, such as arts and current affairs, threatened by commercial pressures.
Mark Thompson, the Director-General of the BBC, this week called for more government funding to support public-service programming, but set his face against the licence fee being carved up by a central body.
Sources at the Department for Culture, Media and Sport said that the details of a contested licence fee had not been spelt out in discussions, but the minister had deliberately placed the issue on the table. “The status quo is not an option,” said a departmental source.

£7.54 of every licence fee is spent on the BBC’s television output each month
£1.17 of every licence fee is spent on the BBC’s radio output each month
92.5% of people in Britain use the BBC every month
£2 the price for the first licence fee, issued in 1946
£135.50 The annual cost of a colour licence
£45.50 The annual cost of a black and white licence
Source: BBC
Industry sectors news at a glance. Interactive heatmap, video and podcast
The inside track on current trends in the charity, not for profit and social enterprise sectors
Read our exclusive 100 Years of Fleming and Bond interactive timeline, packed with original Times articles and reviews
Everything the Business Traveller needs to know to make a better trip
Shortcuts to help you find sections and articles
05/2005
£13,500
08/2008
£109,950
2006
£10,750
Great car insurance deals online
£Excellent+ executive benefits
Torres and Partners
London
£49,229 - £62,035 pro rata
Charity Commission
London/Liverpool/Taunton
Alstom Power
Europe
Six Figure
Rolls Royce
Midlands/Europe
From £89,950
Great Investment, River Views
Special Offers now available
At the new sophisticated
Encore Las Vegas Resort!
Cruise the Islands of Hawaii - Pride of America
List your property with two leading travel websites
Great travel insurance deals online
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths
News International associated websites: Globrix | Property Finder | Milkround
Copyright 2008 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.
Is there some conspiracy to destroy the BBC because if so it would be a great shame for they at least still try to educate and inform. Most people enjoy some variation to their diets. In the old days we had only four TV channels but at least we had some variation. Television in those days educated, entertained and informed. Today it's like having a diet of fast food. Don't forget the licence fee also pays for radio and the BBC still produces the only radio channels worth listening to.
JJ Cowie, Inverness,
Just a point. I am approaching 75 when I do not have to pay for a license. Will Sky, ITV and the BBC provide me with free viewing?.
I doubt it!
M. Cawdery, Portadown, UK
Tracey, Edinburgh, Scotland. The UK isn't the only country with a TV License. Germany, France, Austria and many others have a TV license.
T Cut, West Midlands,
This is a good start. The BBC needs to become more accountable to the majority of the public instead of burrowing its own biased agenda. Competition for the taxpayers money may restore the credibility of the BBC that the current employees have squandered
David Cartright, Birmingham,
If this is agreed will it mean that there will be less advertising on commercial television? I would certainly hope so!
Dave Thomas, Flixton, Manchester, UK
I think the license fee should be scrapped altogether. Britain is the only country where people have to buy a license to own a television. It's a disgrace. I rarely watch the BBC (and even then it's usual BBC News 24 on cable - which I already pay through the nose for) but still have to pay my license fee. I think the Pay-To-View idea above is a great one - let people who want the BEEB to pay for their repeats.
Tracey, Edinburgh, Scotland
Licensing to watch commercial TV makes no sense at all. The word 'commercial' tells us that they are in it for the money and they will make a profit or go out of business. Taxation to support the poor is bad enough; taxation to support the rich is beyond the pale!
Ron Gerard, London,
i dont know what the problem would be , we get to watch BBC programs with adverts in them. and they are still crap.
michael barnett, woodville, new zealand
Presumably the BBC would then be allowed to advertise like the other channels. There would then be nothing for those who do not want to be deluged with the claimed benefits of x, y or z.
M. Cawdery, Portadown, UK
How can you say the UK is a democracy when you license a television set or go to Jail?
90% of the UK is commercial broadcast, encrypt the BBC and charge those that want it, surely thats the only fair way
Peter, Camberley, UK
I think that the BBC is a fantastic resource which needs to be funded properly, either directly from the government or via ia specific tax... the actions of the government show two things - a desire to stiffle the free voice of the BBC and make it subserviant to the requirements of the government, and a lack of understanding in that having a truely independent public broadcaster is important fro democracy, because unlike channels such as SKY, they are not beholden to foreign owners with their own political agenda...
Paul Singh, London, Uk
When the digital transfer is complete, would it not be possible to transfer tp 'pay per view'. That way, if you don't want the BBC
then you needn't pay for it. Sky seem to operate this system fairly easily.
KC Somerset
Kenneth Coomes, Bristol,
Ann, Worcester Park - Dont blame the BBC for the ;amount of repeats they have to show - blame the government for limiting their fundiing, and therefore, curtailiing their abilty to make new programs
Simon Albion, London, Uk
We have already paid for most of the prgrammes on the BBC as they have been repeated and repeated. Very few shows are new and we are expected to accept this. Get rid of the BBC - they are going to the dogs anyway and taking our money with them. When I complained to the BBC I was told that the majority of people have been requesting repeats !!! They have lost my families watching - how many more people have stopped ?
Ann, Worcester Park, UK
This totally avoids the point, which is: 'Why do we have to pay this tax anyway?' Spreading it around a few other companies does nothing to alter the fact that we have this tax extorted from us, merely to have a Tv set installed in our homes. The BBC now 'lets' us watch TV via the internet. Well, who pays for the internet? US!!!! So we pay twice. Get a grip. The TV Tax has to go.
Bryan Lawrence, Hampshire,
Wow....who is going to spout the endless newlab. propaganda now?
Lay you 10 to one on the 'culture' secretary, Purnell is out of his job within 3 months if this proposal proceeds.
Ripsnorter (ex-pat), Malaga, Spain
The BBC tax should not be shared out with other companies. The BBC tax should be scrapped all together. The BBC is VERY poor value for money these days, and I have to listen to their New Labour propaganda - which I have to pay for by threat of prison!!! The BBC has long ago given up on this thing they claim called quality television, let alone public service tv, and I have given up watching the BBC.
If the BBC is so confident of their quality tv, why don't they make their channels scrambled and therefore subscription tv, but paid for per hour instead of a flat fee. Then they will see how little they are liked.
Andzej.S, London, England
"I would gladly sell my house and give all the proceeds to the BBC"
C/o Rowan Atkinson...NOT THE NINE OCLOCK NEWS
Conrad, Newcastle, Tyne & Wear
All that will happen is that the cost of the licence will spiral out of control and it's the viewer who will suffer. BBC is not that good. I pay all that money to watch Eastenders and Dr Who.
Billie, York,
I certainly would not pay more for the very few good programmes that BBC1 show. If they were of the same calibre as "Cranford" I might change my mind. But reality shows - Strictly Come Dancing" and the many repeats do nothing to attract me.
A.Lear, Derby, UK
The BBC now seems to see itself as the unvoted for power in the land that can dictate what we all think and do, and spend the tax they extract from us on the fat cats they employ - it is so sick in so many ways - dump it.
Marty, London, England
And It's an extremely large community that want the BBC TV Licence scrapped altogether as opinion polls show...Let the people free
John, Salford, England