Important decisions affecting two of the UK’s public service broadcasters are pending, according to media reports over the weekend.
The licence fee is set to be frozen at £159 for up to two years, to “help households with the cost of living crisis”, according to sources who leaked the development to the Sunday Telegraph.
So far, the Government has dismissed the reports as ‘speculation’, although leaks to newspapers are sometimes deliberate. Reaction to media reports allow officials to gauge public reaction before they are formally announced as policy. Following the licence fee freeze, annual increases in line with the CPI measure of inflation would be permitted until 2026/27.
The CPI measure of inflation is the lower of the two main indicators of inflation. Telecoms and pay TV operators typically increase bills each year by the higher RPI rate of inflation.
Meanwhile, The Sunday Times reports a decision to privatise Channel 4 is facing delays. Following a Government consultation on the future of Channel 4, over 60,000 submissions have been received. The majority of responses are thought to be opposed to the plan. Former Channel 4 boss Michael Grade and ITV plc are understood to be considering bids for the channel.
An announcement, originally due this month, is now not expected until either December or January. As a result, any sale will be delayed. Selling Channel 4 would raise around £650 million for the Treasury.
Critics say the privatisation of Channel 4 and licence fee freeze are being done for ideological reasons in a bid to exert greater control over media outlets.